One in ten households under financial stress

A significant percentage of Australian households are under housing stress, according to new research.

The Housing Costs Through The Roof report - based on data from the National Centre for Social and Economic Modelling and commissioned by Australians For Affordable Housing - highlights the precarious financial position many homes find themselves in.

Over 850,000 households - more than one in ten across the nation - fit the report criteria for being at risk of financial hardship or poverty once they have covered housing costs such as mortgage repayments or rent.

Sectors considered to be at risk are those which spend more than 30 per cent of their income on housing expenses and are in the lowest 40 per cent equivalised incomes in the country.

First home buyers in Melbourne were found to be more likely facing financial difficulty that those in Sydney, but across the board the figures reveal that for many Australians, budgeting is a week-to-week proposition.

If you are one of the many households in this position, it is important to consider every possible avenue in terms of saving money to alleviate pressure.

An electricity comparison - available for free from a switching service - may lead you cutting crucial amounts of your bills.

Posted by Charlie Moore