RESIDENTIAL PROPERTY
RISING housing values, rent values and interest rates saw Australia’s housing affordability further deteriorate over 2023...
According to the latest ANZ CoreLogic Housing Affordability Report, the number of years to save a 20% deposit at the median income level has again hit 10 years nationally for...
Additionally, the portion of income required to service a new home loan has risen to 46.2%, up significantly from the recent low of 29.0% in March 2020...
While the actual median dwelling value in the period was over $700,000 in September, the value of a dwelling with an affordable loan amount for the median household income...
The portion of income required to pay rents on a new lease entered firmly into the range of rental stress at 31.0%, up from 29.4% 12 months ago. With advertised rent values up...
The year also saw the gap between house and unit affordability shift, with the decade average difference between values nationally was 7.3% before the pandemic...
With median incomes largely keeping up increases in unit values and house values becoming less realistic for first home buyer income rates...
“The time to save a 20 per cent deposit has only shifted by around two months nationally for units since the onset of COVID-19, while for houses the time to save has blown out by...
“This presents a clear shift for those hoping to enter the housing market, as units have stayed within a reasonable price range for new home buyers, while houses have...
The affordability gap between Sydney and Melbourne also deepened in 2023, with the difference in median values between Sydney and Melbourne hitting a series high of...
Australia’s regional housing market also returned to an upswing over the year, with the time it takes to save a 20% deposit up to 9.7 years, with 44.7% of median required to...
This is compared to an estimated 7.5 years at the start of the pandemic in March 2020 and just 25.4% of income to meet loan payments...
“Regional Australia is often thought of as a more affordable alternative for housing, a way to reduce housing costs by compromising distance to major employment hubs,”...
“The COVID-boom in regional migration and values means it’s really not that much more affordable now, and there’s very little difference in the combined regional and capital city...
“In 2024, housing affordability is likely to get worse before it gets better. Dwelling supply will continue to be strained by the high interest rate environment, which has reduced approvals...
“Demand will probably be the only thing can adjust in the short term, so we may see average people per household rise.”