Australians are now spending nearly half their household income on mortgage repayments, with the latest Real Estate Institute of Australia (REIA) Housing Affordability Report revealing that 48% of income is going towards home loans, Domain reported.
In New South Wales, the burden is even heavier, with families spending 57.9% of their earnings on mortgage payments.
REIA President Leanne Pilkington (pictured above) pointed to the growing impact of inflation and rising interest rates on homeowners.
“The impact of rising inflation and interest rate increases has never been more apparent," Pilkington said, noting that Australia’s housing affordability is at its worst level since REIA began tracking it in 1996.
While the Northern Territory remains the most affordable region for homeowners, where mortgage costs take up 32.4% of income, states like Queensland and South Australia have seen affordability plummet, with families there paying over 46% of their income on mortgages.
Sydney remains the most expensive city, where the median house price is $1.66 million—58.5% higher than the national median.
With a federal election on the horizon, Pilkington emphasised the need for government action to address housing challenges.
“We call on all candidates to put housing first in their promises to voters,” she said, urging political parties to focus on housing affordability for both homeowners and renters as they tackle post-pandemic economic pressures.
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