The price of a home is not the only thing that matters to many Australians, but its an important one.
According to new research from real estate agent and publisher Real Capital Analytics, the average Australian’s budget for house construction and renovation has been climbing over the last few years, and now stands at $11,000, or 1.9% of their disposable income.
But that is not all that is driving up the price of homes, says analyst Chris Hughes, whose Real Capital Research team looked at the total cost of a house across all states and territories.
“A lot of the cost of the houses that are built has been in the form of capital expenditure, so they’re not necessarily the result of government spending,” Hughes said.
Hughes says the average house price in Australia has risen by just over $5,000 since 2013, which has meant that the average household has spent $11.9 million on their homes in the past year.
In contrast, the median income of Australian households has increased by just under $4,000 over the same period, to $53,800.
The research was based on a national sample of over 1,000 Australian households, and surveyed a sample of 1,091 households in April 2017.
For a full breakdown of the results, visit the Real Capital blog.
Read more about house construction here:What’s your house worth?
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