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What ‘Affordable Housing’ Really Means

The growing gap between the money needed to buy a home and household incomes, especially in younger demographics, has led many commentators to declare the dream of homeownership over. The rate of homeownership among Aussies aged 25-34 plummeted between 1982 and 2011 to just 34%. House prices have been outstripping growth in wages so, in this article, we’re investigating the concept of building an affordable home in Sydney.

Runaway Housing Costs

McCrindle Research estimates that the average annual income for Australians had increased about tenfold from 1975 to 2015. Sounds like good news, doesn’t it? Until you realise that during the same period, house prices increased more than thirtyfold! Negative gearing and the capital gains tax have served to compound this situation, driving up house prices and the cost of rent.

By favouring buyers who are on their second or third investment property, these measures have locked first home buyers out of the market. In Australia, investment properties now outnumber traditional, owner-occupier homes. Combine those soaring prices with widespread under-employment of millennials and you have a fairly grim outlook for the future of home ownership.

Affordable Housing to the Rescue 

The creation of more affordable housing is one way people are dealing with this situation. Affordable housing is not a social initiative; it simply creates high-quality homes in areas people actually want to live, the cost of which can be shouldered by a low-to-middle income household without leaving them impoverished.

What Counts as Affordable Housing?

The parameters of affordable housing naturally shift from place to place, depending on the incomes of those living there. Generally, properties that cost $600,000 or less are considered to be within the means of most first time home buyers. That makes sense, especially if the home buyers are coupled. You need $30,000 for a deposit on a $600k home – two people netting $55k p.a. could afford that in less than two years by saving 15% of every paycheque.

Finding Affordable Housing

The traditional way of finding affordable properties was to look just a little further afield. The cost of housing reflects demand and demand tends to cluster around certain areas. Generally, the more central a suburb, the higher demand will be and that will push the prices way up.

However, in Sydney and other Australian cities, looking further afield is becoming more difficult. As recently as 2013, houses at or below the $600k mark could be found in more than 200 Sydney suburbs. By May of 2017, that number had dropped to just 37 suburbs, all of them more than 35 kilometres from the CBD. For people whose lives are based closer to the city, that is a pretty major disruption; hence a lot of people are opting to build their first home rather than simply buying.

Building for Affordability

Purchasing land and building a home is another way to make the process more affordable. While the price of land has also risen, greenfield land can still be purchased for less than $300,000. With New Living Home’s first home buyer’s special you could have a brand new, 3 bedroom house built on that land for $234,000, meaning you’d be getting your home for well under $600,000.

If you have any further enquiries or would like to see the options available to you, contact New Living Homes today on 1300 366 766 or simply visit us online!


Building a New Living Home has given me confidence that I can easily embark on building a home rather than buying a place, and get a better house/ home rather than a small flat. But you have to choose a builder that KNOWS how to build, that builds exactly how the design dictates. A builder who can deliver what they say, when they say. A house that won’t look daggy in years to come is important too, and New Living Homes did just that. The overall investment has worked out well too, growing in value is a short period of time.


”The idea of our brand new home is still really sinking in as we never dreamt of building or ever own. A VERY big thank you to New Living Homes for giving us a brand new home! You’ve made our dreams real!”- Grevillea 4.1, Elegance Facade

L & M King

We would just like to say a massive thank you once again for all your help with the house. We moved in on the weekend and we are loving it ! So thank you for being part of the team that made our dream come true.

Belinda, Jordan Springs, Acacia 4 Urban

I love that my new home is mine!!!! There is nothing I don't love about it. The finishes are great and it is just perfect! I love showing it off to people and all of my friends and family love it and always compliment the design and workmanship.

B.M - Spring Farm  

‘’From the very beginning, our experience with New Living Homes has been nothing but amazing. From our very first meeting at Spring Farm, to the accounts team, to the pre-construction team, and our Construction Manager on site, nothing was ever an issue, or a question too stupid’’.

Rebecca & Steve - Jordan Springs 

‘’I have been extremely happy with my experience with New Living Homes and have told anyone and everyone about our build. Everything went smoothly and yes there were a few problems but our site manager sorted them out as quickly as he could.. Throughout all the build, nothing was too much trouble for our site manager’’

Debbie & Brian - Jordan Springs 

After hearing some horror stories of people building their homes we were fairly nervous to see how it would all
unfold however from the very first dealing with New Living Homes we could not fault a single thing. I would like to
give special mention to Emma from the Brooks Reach Display who was very accommodating with us pestering her
with what seemed like every week as we would be checking different things in the display home.

Tim & Kara - Flinders

My experience was excellent. This was the second house I have built in 4 years and the whole experience was a pleasure from start to finish. All of the sales team were very helpful and very responsive to each and every enquiry I had.

Damian & Lauren - Spring Farm 

Building with New Living Homes has been a pleasant and enjoyable journey so far, and we know we have Sandra to thank for this. Her customer service is second to none, and has made all the difference in building this time round. My husband and I just wanted to make sure recognition and praise was given where it is due. Thanks again for everything Sandra! We are looking forward to more builds with NLH. 

D.E, Marsden Park 

I always thought that building a house in Australia would be a nightmare like everyone told me but it was more than a pleasure as I was never troubled about anything. The process was as smooth as a butter.

Thank you guys, its because of your amazing team work, good flow of communication and the zeal to work hard to let people achieve their dreams, has gotten us what we really wanted. -

Monika & Mayur, Elara 

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