In news that will shock approximately zero people, Australia‘s housing debt has more than doubled in the past 11 years. It now sits at a tidy $49,165 per Australian adult, which is – according to some quick calculations – a whole damn lot of money.
Whereas other forms of debt, like credit card debt, have held relatively steady, housing debt has skyrocketed along with prices. It’s at an all-time high – and has resulted in a situation where young buyers are either completely priced out of the market or insanely leveraged.
A whole lot of a debt + a massively unaffordable housing market = not a great situation, yeah?
Yeah. We’re one of the most indebted nations in the world when it comes to housing, and it doesn’t look like it’s slowing down anytime soon.
Domain recommends that borrowers manage their debt with weekly or biweekly payment plans on their mortgage. That’s one way to go about it, but it’s pretty clear the current situation can’t sustain itself forever.
Source: Domain.
Image: Getty Images / Tobias Titz.
