Victoria named most affordable state as rates smash home dream
Victoria has been identified as Australia's most affordable state for homebuyers, though record-low affordability persists nationwide due to high interest rates. The REA Group report indicates that typical income earners are struggling to access the housing market, with mortgage stress becoming a widespread issue.
Why it matters
The ongoing housing affordability crisis in Australia is a major economic and social concern, impacting the financial stability of households.
The great Australian home dream is crashing out, with affordability at record lows despite the Albanese government’s May budget tanking home prices.
Victoria is now the most affordable state in the country for homebuyers, but house hunters are still worse off as soaring interest rates smash the home dream.
REA Group’s latest Housing Affordability Report, released today, revealed that for a family earning the state’s typical $127,000 income, just 16 per cent of homes sold in the past financial year were within reach without going into mortgage stress.
It’s even worse for lower income households, with warnings they may now only be able to afford a studio apartment — or an extremely regional home in need of work.
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