The Australian economy continues to feel
the effects of COVID-19, with the virus and virus response likely to affect every aspect of the economy for years to come. While far from immune, the housing market has been fairly strong in the face of very significant challenges. According to recent data, house prices have outperformed wages over the past financial year due to a weak labour market and better than expected property prices. While this is good news for many property owners, it does put home ownership further out of reach for some.
According to data from Domain, house prices
have been stronger than wages growth in every capital city but two over the
last year. Despite the very real impact of the pandemic on dwelling prices, the
impact of COVID-19 on employment and wages has been even more pronounced.
Overall, national wage growth was just 1.7% in the year ending June, with house
price growth up 6.6% leading to a discrepancy of 4.8%. According to Domain
senior research analyst Nicola Powell, “Overall for Australia, wages growth has
hit the lowest rate in 23 years.”