Two full-time jobs now needed to service a mortgage

Two full-time jobs now needed to service a mortgage on a typical Sydney home

Sydney Morning Herald

http://www.smh.com.au/business/the-economy/two-fulltime-jobs-now-needed-to-service-a-mortgage-on-a-typical-sydney-home-20170903-gy9ucs

Sydney's housing crisis has reached an alarming new threshold with a key measure revealing it now takes more than two average full-time wages to affordably service a loan for a typical city home.

The Housing Industry Association's housing affordability index, which measures the capacity of households to service mortgages, shows Sydneysiders must fork out $4,729 per month, or nearly $57,000 a year, to service a standard mortgage on an averaged-priced home in the city.

That is more than 30 per cent of the earnings of a Sydney household with two average full-time wages – the portion of income widely accepted to be a manageable housing repayment. … read more via hyperlink above …

2017 13th Annual Demographia International Housing Affordability Survey

http://www.demographia.com/dhi.pdf

DEFINITION OF AN AFFORDABLE HOUSING MARKET … www.PerformanceUrbanPlanning.org

For metropolitan areas to rate as 'affordable' and ensure that housing bubbles are not triggered, housing prices should not exceed three times gross annual household earnings. To allow this to occur, new starter housing of an acceptable quality to the purchasers, with associated commercial and industrial development, must be allowed to be provided on the urban fringes at 2.5 times the gross annual median household income of that urban market (refer Demographia Survey Schedules for guidance).

The critically important Development Ratios for this new fringe starter housing, should be 17 - 23% serviced lot / section cost - the balance the actual housing construction.

Ideally through a normal building cycle, the Median Multiple should move from a Floor Multiple of 2.3, through a Swing Multiple of 2.5 to a Ceiling Multiple of 2.7 - to ensure maximum stability and optimal medium and long term performance of the residential construction sector.

What new fringe housing should cost …

Google search affordable North American examples …

For example …

‘New Homes Houston’ … whatever …

Check out this Arizona example …

Pulte Homes … Phoenix … Arizona

https://pulte.com/homes/arizona/phoenix/florence/parkside-at-anthem-at-merrill-ranch-7739#CommunityDetailsView

… Distribute & discuss … thank you …

Hugh Pavletich

Co-author Annual Demographia International Housing Affordability Survey

http://www.performanceurbanplanning.org/ & http://info.scoop.co.nz/Hugh_Pavletich & http://info.scoop.co.nz/Performance_Urban_Planning & http://info.scoop.co.nz/Demographia

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NEW ZEALAND

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... COPY YESTERDAY’S GENERAL EMAIL ….

From: Hugh Pavletich [mailto:hugh.pavletich@xtra.co.nz]
Sent: Sunday, 3 September 2017 6:19 a.m.
Subject: HURRICANE HARVEY: A VIEW FROM A RUGGED COMMUNITARIAN ... LEO LINBECK ... NEW GEOGRAPHY
Importance: High

Posted at … http://www.kiwiblog.co.nz/2017/09/general_debate_2_september_2017.html/comment-page-1#comment-2010425 … and … https://www.macrobusiness.com.au/2017/09/macro-afternoon-267/#comment-2947410

… ESSENTIAL READING …

HURRICANE HARVEY: A VIEW FROM A RUGGED COMMUNITARIAN ... LEO LINBECK ... NEW GEOGRAPHY

http://www.newgeography.com/content/005730-hurricane-harvey-a-view-a-rugged-communitarian

• by Leo Linbeck III

Narratives are not necessarily built on facts; they’re built on stories, pictures, graphics, and videos. Ideally, we want our narratives to be aligned with the facts; but that doesn’t always happen.

Here is a synthesis of some of the predictable narratives being spun in the immediate aftermath of Hurricane Harvey from such places as The Washington Post, Slate, The Guardian, Newsweek and NPR: … read more via hyperlink above …

• Leo Linbeck III is a husband, father of 5, CEO of Aquinas Companies, Executive Chairman of Linbeck Group, a Houston-based institutional construction firm, Founder and Chairman of Fannin Innovation Studio, a biomedical startup studio, and Lecturer at Stanford Graduate School of Business. He was also the Founding Chairman, and is currently the Vice Chairman, of the Center for Opportunity Urbanism, a Houston-based think tank.

ENDS

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