101 Australian suburbs average homebuyer will lose after rate rise
A potential interest rate hike by the Reserve Bank of Australia could significantly reduce the borrowing power of average homebuyers. Experts warn this could price buyers out of over 100 suburbs and negatively impact the broader housing market.
Why it matters
Rising interest rates directly affect housing affordability and economic stability for the average Australian household.
A decision to hike interest rates by Reserve Bank governor Michelle Bullock could squeeze homebuyers out of more than 100 Aussie suburbs and towns.
Australia’s average homebuyer is facing a 101 suburb wipeout on where they can afford a house if the Reserve Bank hikes interest rates on Tuesday.
One rate cut is enough to wipe about $20,000 from the borrowing power of the nation’s typical homebuying household, taking them from being able to afford homes with $877,000 down to homes maxing out around $858,000.
Analysis of impacts to borrowing capacities also shows that a second rate hike before the end of the year could leave those borrowers who can afford the nation’s average loan struggling to get a home worth $840,000 and at risk of no longer being able to access 236 areas around the nation that they can afford today.
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