In recent years, residential property prices in Australia have risen dramatically. The March 2004 Productivity Commission Inquiry Report (PDF 1.7MB) into First Home Ownership indicates that since 1996, the Australia-wide average price for a detached house has risen more than 80% in real terms and over half of this increase occurred in the 2001-2004 period.
In NSW the rise in house prices has been felt most dramatically in the Sydney Metropolitan region, major regional centres of Illawarra and Newcastle, and other coastal areas. The rise has attracted recreational benefits, links to transport and/or employment opportunities. As available land resources in these areas have been depleted, prices have been pushed upward and beyond the capacity of the average wage earner.
During these years house prices in NSW have risen faster than incomes. As a result, the capacity of first homebuyers to save for a deposit has steadily declined. Added to the house price/income disparity is a growing trend toward part-time or casual employment, which makes it more difficult for potential home purchasers to afford a deposit, or to be considered a viable lending risk by financial institutions or other organisation.
Most affordable housing has traditionally targeted the rental market. In NSW there are also efforts to facilitate home purchase by low-to-moderate income households. There are a number of successful affordable housing projects targeting homebuyers already completed.
In addition, the NSW Government also offers information and advice to people wishing to purchase or who are home owners, but are experiencing financial difficulties.