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Households under pressure from cost of living

Households need to protect the home budget 16000646 800468520 0 0 14018760 300

A new organisation has aimed to tackle the issue of spiralling living costs following its launch yesterday (September 19) at Parliament House.

Australians for Affordable Housing (AAH) will put pressure on the government to take action on the growing cost of dwellings.

According to AAH, 720,000 low-to-middle income households have to allocate 30 per cent of their income to housing.

A further 460,000 spend over 50 per cent of their earnings on the cost of dwellings.

Housing expenditure continues to rise and the flow-on effect is causing many to struggle.

A report by AAH titled Australia's Broken Housing System states: "In the last ten years house prices have risen by 147 per cent while incomes have risen by 57 per cent.

"Despite interest rate falls, households are paying more on interest repayments than they were in the 1980s."

Households struggling with either mortgage repayments or rent will be looking to make savings in areas that they have more control over, such as the cost of energy in the home.

Electricity prices can be minimised by consulting a switching service which will evaluate cheaper utilities options for consumers.

Posted by Charlie Moore