A recent report from PropTrack, the analytics division of REA Group, has revealed that housing affordability in Australia has plummeted to its lowest level in at least three decades.
The study indicates that only 13 percent of Australians with average incomes can afford to purchase a home, with rising mortgage rates and soaring property prices cited as the primary culprits behind this concerning trend.
The comprehensive analysis conducted by PropTrack assessed housing affordability and accessibility across various income brackets, geographic locations, and age groups, highlighting the extent of the problem.
Regional Disparities in Housing Affordability
For prospective homebuyers in New South Wales, Victoria, and Tasmania, finding a property within their budget is proving increasingly challenging. In Tasmania, for instance, a typical-income household could only afford 5 percent of homes sold over the past year, marking the lowest rate of affordability in the nation.
First-time homebuyers and lower-income households are grappling with the situation, with the report indicating that many are facing difficulties in both mortgage repayment affordability and saving for the requisite 20 percent deposit.
PropTrack economist Paul Ryan emphasized the challenges faced by Tasmanian families, where mortgage repayments now account for a staggering 35 percent of household income, reaching a record high. He noted that while property prices in Tasmania have surged significantly and are approaching those in Victoria, incomes have not kept pace, contributing to the state’s worsening housing affordability crisis.
