Stable Incomes No Longer Enough for Sydney Housing Market, Research Finds

According to research from the University of Technology Sydney (UTS) and the University of New South Wales (UNSW), full-time employees earning $1,500 a week in Greater Sydney are not expected to afford a home. The study, published in the journal Cities, highlights the challenges of housing affordability for both full-time and part-time employees in Australia. The researchers developed an affordability index based on various factors such as mortgage payments, property market value, deposit amount, lending rates, and loan duration. Professor Chyi Lin Lee from UNSW emphasized the need for comprehensive policy solutions to address the housing affordability crisis. The study also suggested that median-income earners may need additional financial support from existing wealth or cash gifts to purchase a home and afford mortgages. The Australian government’s Housing Support Program aims to fund housing projects to meet the target of 1.2 million new homes within 5 years. However, the study indicates that achieving homeownership solely through earnings is increasingly challenging, making the Australian dream of owning a home more difficult to attain. The Australian Landlords Association (ALA) proposed practical solutions to enhance housing affordability, including different rental agreements, national rental insurance, property market reforms, and property tax caps. Could you please rephrase that?

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