Housing affordability hits lowest rate on record despite recent falls in property prices
Australian housing affordability has reached a record low, with median-income households able to afford only 12 percent of homes sold. Economists attribute this to high interest rates and a lack of housing supply, noting that recent price drops are insufficient to resolve the crisis.
Why it matters
This trend reflects a growing global economic challenge where rising borrowing costs and supply shortages are pricing middle-income earners out of the property market.
Even with recent declines in property prices, national housing affordability has hit an all-time low. ( ABC News: Kelsey Reid )
Housing affordability rates are at a record low, with households earning $125,000 able to afford around one in every 10 homes sold.
Mortgage repayments as a share of household income are also at their highest rate since 1989.
Economists say affordability will remain a significant challenge until there is a meaningful increase in housing supply.
Link copied Share Share article Housing affordability has fallen to its lowest rate on record, with households earning a typical income only able to afford about one in every 10 homes sold across the country.
According to data from realestate.com.au, a household earning a median income of about $125,000 a year could afford just 12 per cent of all homes (houses and units combined) sold nationally in the last financial year.
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