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Housing affordability has declined for the third consecutive quarter, a new report has found.
According to the Real Estate Institute of Australia’s Deposit Power Housing Affordability Report, higher interest rates and higher median house prices are underpinning the continued increases in average home loan repayments.
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The proportion of income required to meet loan repayments across Australia has increased from 29.0 per cent in the September quarter, to 30.7 per cent in the December quarter.
The Australian Capital Territory remains the most affordable state or territory in which to own a home, where the proportion of income required to meet loan repayments increased to 17.7 per cent.
New South Wales is the least affordable state or territory in which to own a home, where the proportion of income required to meet loan repayments increased to 33.6 per cent – 2.9 percentage points above the national average.
One of the biggest factors influencing the property market at the moment is the shift in buyer demographics,” Deposit Power’s national manager Keith Levy said.
“While there is still some activity from first home buyers, with the government incentives returning to normal levels, we are currently seeing more purchases from up-graders and investors.”
