First time buyers going rural to avoid high property prices

I read an interesting story over at news.com.au today

It turns out that the whole housing situation is getting so desperate for first time buyers that some are upping sticks and moving out into the regional areas where property prices are cheaper.

The report by the Housing Industry Association (HIA) says that population growth in regional areas outstripped, or equalled, capital-city growth in Australia’s three largest states in 2005 and 2006.

“Record low housing affordability in many state capitals has forced an increasing number of first-time home buyers to relocate into non-metropolitan areas, which in many cases has caused these people to give up their current jobs in the hope of finding a home to start a family,” the association’s director of housing and economics, Simon Tennent, said.

Australian Bureau of Statistics figures show the Northern Territory capital Darwin had the nation’s highest population growth rate, of 2.5 per cent in 2005 and 2006.

This was followed by regional Queensland which welcomed 46,938 new residents sparking a record population jump of 2.1 per cent.

It outstripped the state capital Brisbane’s 1.6 per cent population increase rate of 29,454 new arrivals.

Regional Western Australia, which is experiencing a mining-led resources boom, had a growth rate of 1.9 per cent (10,010 new residents) while Perth enjoyed a 2 per cent rise (29,910 newcomers).

A greater proportion of residential housing is moving to regional areas, Mr Tennent said following the release of the HIA’s annual population and residential building hotspots report.

“In addition, the balance of residential building work is also moving out of capital cities and into metropolitan areas with many building and population ‘hotspots’ being located in regional centres where housing is considerably more affordable,” Mr Tennent said.

Queensland, Victoria and New South Wales recorded the highest population growth in the year to June 2006.

Popularity: 2% [?]