Housing affordability is declining quarter on quarter, according to the Real Estate Institute of Australia’s Deposit Power Housing Affordability report.
The latest report found that the proportion of income required to meet home loan repayments increased by 0.5 per cent in the December quarter to 35.3 per cent – up from 34.8 per cent in September quarter 2010.
In addition, Australian Capital Territory remains the most affordable state or territory to own a home, with the proportion of income required to meet loan repayments falling to 18.5 per cent.
New South Wales remained the nation least affordable state, with the proportion of income required to meet home loan repayments increasing to 39.5 per cent – 4.2 per cent above the nation’s average.
REIA president David Airey said over the year, housing affordability fell 4.6 per cent with the largest decreases occurring in New South Wales and Victoria.
“Compared to the corresponding quarter of the previous year, all states and territories recorded a decline in housing affordability.”