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Affordability takes a beating

By webmaster
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Housing affordability continues to decline across Australia, according to the latest Real Estate Institute of Australia Deposit Power Housing Affordability Report.

The report, released yesterday, showed housing affordability had declined across all states and territories with the proportion of income required to meet loan repayments increasing nationally from 30.7 per cent in the December quarter 2009, to 32.6 per cent in the March quarter 2010.

“It has now been 12 months since we have seen any improvement in housing affordability. In March 2009, the proportion of income required to meet loan repayments was 28.8 per cent. Nationally, the average Australian household is now spending an extra $143 per month on their mortgage, compared to the previous quarter,” REIA president David Airey said.

The ACT remains the most affordable state or territory in which to own a home where the proportion of income required to meet loan repayments increased 0.2 percentage points to 17.9 per cent; 14.7 percentage points below the national average.

NSW is the least affordable state or territory in which to own a home, with the proportion of income required to meet loan repayments increasing 0.9 percentage points to 34.5 per cent.

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