Aussies spend half their income on mortgages
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.
Housing affordability declines nationwide
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.
Some states fare worse than others
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.
Political pressure mounts on housing issues
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.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!