Australia vs America: Pricing Of The Australian Housing Market Double The USA

Housing in Australia is 82% more expensive than housing in the USA due to an estimated shortage of around 200,000 properties. The housing market shortage in Australia is well publicized and economists predict that this situation will remain for some time to come. Analysis suggests that it will take several years, if not decades, before Australia sees any shift in the shortage.

Australia has six out of ten of the most unaffordable cities in the world, amidst countries including England, America, Canada and Ireland. Our median house price was almost 7 times the individual gross yearly income. Melbourne and Sydney are the two Australian cities which are surging ahead as the most populated cities, with an annual growth of 28% for Melbourne and 21% for Sydney.

Switzer analysis on the housing market prices for Australia and America

Australia's population growth and trend toward smaller households are fuelling demand for housing.

The Australian population expanded 2 percent by the end of last year from a year earlier to 22.2 million people. It is anticipated to increase to 35.5 million by 2056, with net migration of 180,000 a year, statistics bureau data based on current trends show.

Forecasts for the National Housing Supply Council, a Government monitoring body, shortage will surge to 436,300 by 2019 from about 200,000 currently.

With the housing trend shortage set to continue for quite some time, the opportunity for investors has never been greater. High rental yields are achievable in areas of growth and attraction, whilst the housing market shortage fuels the surge in rental properties. The way forward looks like investing in property may be the best wealth creation strategy.

(Source: Bloomberg Business and Financial news, 5 th July 2010)