Australian housing affordability falls to worst level on record

SYDNEY, Nov. 20 (Xinhua) -- Housing affordability in Australia has fallen to its worst level on record, a new report has found.

The annual housing affordability report, published on Wednesday by the Australia and New Zealand (ANZ) Banking Group and property data provider CoreLogic, found that the national median dwelling value was eight times higher than the median annual household income in September. It equals the record-high set early in 2022.

The same report found that, as of September, it takes the median income household 10.6 years to save a 20 percent deposit for the median dwelling.

Assuming a 20 percent deposit, 25-year loan term and current average mortgage rates, the report said that a record-high 50.6 percent of the median household income is required to service a new home loan, compared to 30.6 percent in September 2019 and the 20-year average of 36.6 percent.

According to the report, Australia's median household income grew by 2.8 percent over the 12 months to September while the median dwelling value increased by 8.5 percent and rents grew by 9.6 percent in the same period.

Modeling for September 2024 shows that only 10 percent of the housing market would be considered genuinely affordable, defined as less than 30 percent of income to service a loan, for the median income household, down from 40 percent in March 2022.

"Even high-income households have seen drastically less access to the housing market, putting pressure on cheaper pockets of the market," the report said.

Meanwhile, the national median rental rate was a record 33 percent of the median household income in September.