Housing affordability is now at its worst level in at least three decades, driven by the sharp rise in mortgage rates and increasing home prices, a new report has found.
The data comes from PropTrack, the analytics division of REA Group, which analysed affordability and accessibility across different household income distributions, locations, and ages.
People looking to buy a house in New South Wales, Victoria or Tasmania will have the toughest time finding something in their price bracket.
A typical-income household could only afford 5 per cent of homes sold in Tasmania in the past year — the lowest in the country.
First home buyers and lower-income households are finding it particularly challenging.
“We’ve got a situation where first home buyers are having strains on affordability in terms of repaying mortgages, as well as a difficulty saving a deposit 20 per cent of the home price,” PropTrack economist Paul Ryan said.
Mr Ryan noted that for Tasmanian families in particular, mortgage repayments account for 35 per cent of household income — a record high.
(ABC)
