This line graph indicates the contrasting relationship between mortgage affordability and rent affordability, over a period of years.
On the ‘y’ axis, is affordability. Here, affordability refers to the amount of income spent on paying for housing costs.
On the ‘x’ axis are a series of years starting with 1982 and ending at 2017, with five year intervals.
In 1982 the average person spent twenty-five per cent of their income on mortgage payments, and would have experience a sharp surge in costs, resulting in a fifteen per cent increase in mortgage rates.
This would prove to be the last upsurge for mortgage payments, as the mortgage affordability continued to steadily decline from 1987 onward.
Rent affordability, on the other hand, started out at twenty-three per cent or less, and steadily rose to about thirty per cent of one’s income by the end of 2012.