Significant increase in mortgage costs identified by Treasurer
Australian households increasingly spend more on mortgage payments
Last updated 24 Nov 2016
The cost of mortgages rose significantly in the 30 years 1981 to 2011. As Treasurer Scott Morrison identified in a recent speech, the ‘share of median household income spent on mortgage payments has increased by more than half for 25–34 year olds between 1981 and 2011 and more than doubled for 35–44 year olds, with each paying around 25 per cent or more of median household income on their mortgages.’
This graph from the AHURI Final Report ‘Generational change in home purchase opportunity in Australia’ (2014) shows the increase in median mortgages as percentage of median household income for householders aged 24–34 and 35–44.
Source: Generational change in home purchase opportunity in Australia, AHURI Final Report no. 232 (2014)
median household income spent on mortgage payments has ... more than doubled for 35–44 year olds