Low incomes primary concern for service workers trying to buy homes

"Massey University's Home Affordability report, released tomorrow, reinforces what cleaners, caregivers and service workers all over New Zealand already know - housing affordability is the worst it's ever been," said Service and Food Workers Union National Secretary John Ryall.

"Experts confirm that-house prices have now outstripped what someone on the average wage - around $42,000 per annum - can afford. They say that on the average wage it is almost impossible to service a mortgage on the average home," said Mr Ryall.

"Cleaners, caregivers and service workers around New Zealand are paid almost half the average individual wage leaving them unable to cover rent and bills, let alone save a house deposit or service a mortgage." said Mr Ryall

"Low incomes are the primary concern for service workers - most are earning just above the minimum wage and are living in Auckland, Wellington and other main centres where the housing situation is most acute" he said.

"With house prices rising much faster than take home pay, service workers, who are predominantly Pacific Island and Maori workers, will never realise the dream of home ownership."

"This is an untenable situation for service workers who do essential but often unacknowledged work" said Mr Ryall

"This low wage crisis is worsening and urgent action must be taken by Government and employers to ensure that these hard working New Zealanders are paid decent wages" he said.

"Service workers are campaigning hard for a living wage in the hospitals, aged care and cleaning industries to improve their situation, because while the income gap between rich and poor widens it becomes more and more difficult for these workers to enjoy the same opportunities as other New Zealanders," Mr Ryall concluded.

The Massey University study showed that housing affordability is the worst it has been since 1989 with almost 75 percent of take home pay required to service a mortgage on an average home. Experts state that a comfortable percentage would be 40 percent .

ENDS

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