PropertyBuzz, your daily dose of property news.
The median Australian rent hits a new record high, why construction levels will continue to flounder in 2024, and how will AI impact gender equality?
Welcome to Property Buzz! I’m Orana Durney-Benson.
Today is Wednesday, 24 January, and the average Australian now spends over $600 a week on rent – the highest number ever recorded.
– This is a significant increase from the median of $437 per week that was seen in August 2020.
– In total, the median Australian household is spending over $30,000 a year on rent. This means that for rent to remain within the 30% ‘affordable’ threshold, an Australian rental household must have a post-tax income of over $90,000.
– CoreLogic economist Eliza Owen attributes the rise to factors such as a decline in average household size, and reduced social housing supply.
– The median rent in some capital cities is even higher than the national average, with the median rent in Sydney now sitting at $745 a week.
Meanwhile, MCG managing director Mike Mortlock has stated that Australia is unlikely to see a significant easing in construction bottlenecks in 2024.
– He said that across the nation, the cost of labour continues to rise, offsetting any gains from a gradual reduction in the price growth of materials.
– Mr Mortlock warned that the federal government’s commitment to build 1.2 million homes by 2030 is “fanciful at best,” noting that a third of construction companies continue to report job vacancies.
– With overseas immigration and high rental demand showing no signs of slowing, Mr Mortlock warned that the rental crisis is unlikely to be solved by construction supply anytime soon.
And on the global stage, the International Monetary Fund has revealed that the AI revolution is set to amplify gender inequality.
– A new report from the IMF found that women are more vulnerable to the impacts of AI, with half of women globally in ‘high-exposure’ jobs.
– Other forms of social inequality could also be exacerbated by AI, with high income earners, university-educated workers, tech-savvy young people, and men all forecast to benefit the most from AI.
– The IMF report comes in the wake of concerning data from property organisations, which found that women make up only 30% of company CEOs.
That’s it for today.
See you again tomorrow, 25 January, for your daily dose of Property Buzz.
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