Is Housing Affordable in Australia?
Certainly not. There are things in life we choose to spend on, and things we have to have. And in everything there are options and price points. I may not be typical in nature, but I am on a salary that is normal for someone of my age. Here’s what I do spend, and mostly I couldn’t spend much less.
- Food – $70/day week, if I take my own lunch to work and cook my own meals. I might eat out if I wasn’t single
- Water – free, comes from a tap
- Alcohol – $20/week to get drunk as a skunk 4 times a week, if I chose to (cask wine). In reality I also go to the pub but don’t need to
- Transport – $40/week, tram to the city. This is normal for most of Melbourne if they choose public transport
- Shoes and Clothes – I’m not into fashion, so $10/week would be plenty
- Utilities and insurance – $40/week and I don’t have health insurance
- Entertainment – $90/week for books, pay TV, internet, Spotify, going out. Otherwise I’d go mad…
- Child support – which I would pay even if I didn’t have to, $175/week
- Saving – for holidays (paying off credit card from holidays is more likely), is $100/week
I think you get the idea – I live quite economically, and it doesn’t bother me at all. Material possessions and preciousness are not me. But if they were, my expenses would be way higher.
- Housing – $430/week. I live in the inner suburbs, because I need to to stay sane. I could live in a very shitty alternative to my 1-bed apartment and pay $350/week. The most despicable of private accommodation in the outer suburbs is $250+/week and I’d literally rather live in a tent.
So, roughly speaking, I spend $1,000/week, and 43% of that is on rent*. If I chose a less nice apartment it would be 35%. And that is as someone who is frugal. If I spent what most people spent on non-essentials, I’d be broke. Or have no life whatsoever.
The perceived wisdom in developed countries is 30% of income should be the maximum you spend on rent, and in Australia the average in capital cities is 40%. Couples have it much easier, obviously. As a single person, being in a relationship could be seen as a massive economic advantage, and while that couldn’t be a motivation for me, it is food for thought.