Australians Have a Tough Time Affording That First Home

Canberra, Australia–Affordability for Australian first-time homebuyers is “the worst on record,” according to one treasury official, the Daily Telegraph reports.However, people aren’t finding it difficult to spend more than 30 percent of their income on housing, Phil Garton, manager of Treasury’s household and labour unit told the Senate Select Committee on Housing Affordability in Canberra on Tuesday.Purchasing a home for the first time has become less and less affordable since the mid-1990s in Australia. Population growth, smaller households and higher incomes have increased demand–which has grown faster than supply, producing a yearly shortage of 30,000 to 40,000 homes.The Australian Reserve Bank on Tuesday said it would keep its cash rate at a 12-year high of 7.25 percent this month.