The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The latest ANZ CoreLogic Housing Affordability Report for November has revealed a "triple whammy" effect on prospective home buyers in Australia.
Affordability has worsened for not only buyers but also mortgage holders and renters, and unfortunately, the situation is predicted to deteriorate further by 2024.
Rents on the Rise
One of the key challenges faced by prospective home buyers is the significant rise in rents. This surge in rental costs makes it increasingly difficult to save up enough money for a deposit on a property. In fact, according to CoreLogic, it currently takes the average household around 10 years to save up a 20% deposit on the median priced Australian home.
Home Values Pushing the Dream Further Away
The rising trend in home values is another obstacle preventing many Australians from achieving home ownership. As these values continue to soar, the prospect of owning a home becomes even more distant for the average buyer.
Mortgage Rates on the Rise
Finally, the ongoing increase in mortgage rates exacerbates the challenges faced by home buyers. Higher interest rates make it more difficult for buyers to secure a mortgage on affordable terms.
The gap between what the median buyer can afford and the actual median price is currently at its widest level in over 20 years:
For instance, while the median capital city home in Australia is valued at $741,000, the median household with a 20% deposit could realistically afford to pay only up to $479,000 to avoid mortgage stress.
According to Eliza Owen, CoreLogic’s Head of Australian Research:
"There's probably more challenges than ever for first home buyers trying to get into the market. The median dwelling value, for the median income, is not really serviceable with a 20% deposit at the moment. If you don’t own housing already, it’s very difficult for incomes to keep pace with the movement of values, particularly for houses."
Adelaide Timbrell, ANZ senior economist, further adds that the housing affordability situation is expected to worsen in the coming year as house prices and rents continue to rise:
"We’re not seeing any reason to think there's going to be a turnaround in housing affordability any time soon."
Unfortunately, the Australian Dream of owning a home is drifting further out of reach. The record immigration program implemented by the Albanese government is compounding the issue, leading to increased house prices, rents, and interest rates.
Published:Wednesday, 29th Nov 2023 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Commonwealth Bank of Australia (CommBank) has reported a significant surge in online home loan applications, with figures showing a fivefold increase over the year leading up to September 2025. This trend underscores a growing preference among Australian borrowers for digital channels when seeking mortgage solutions. - read more
ANZ Bank has updated its forecasts for the Australian housing market, projecting faster house price growth and delaying expectations for interest rate cuts. The bank now anticipates capital city house prices will rise between 6% and 7% in 2024, followed by increases of 5% to 6% in 2025, and around 5% in 2026. These revised figures suggest a more robust housing market than previously expected. - read more
Recent data indicates a significant resurgence in property investor activity within the Australian mortgage market. In the three months leading up to June 2025, investors accounted for 38% of all new loans written for property purchases, marking the highest level in nearly eight years. This uptick is largely attributed to falling interest rates and persistently low rental vacancies, which have enhanced the attractiveness of property investments. - read more
Before considering a loan application, it's crucial to have a clear understanding of your current financial position. Start by noting down all sources of income, including salary, any additional earnings, or government benefits. This will give you a comprehensive view of your financial inflows. - read more
When considering personal finance in Australia, personal loans are a handy resource for achieving various financial goals, from consolidating debt to funding a major purchase. Yet, it's essential to approach this financial tool with caution and understanding. Proper comparison of personal loans can be the difference between a financial stepping stone and a stumbling block. - read more
Understanding what a credit score is and its importance is crucial for anyone seeking a personal loan. A credit score is a numerical representation of your creditworthiness, typically ranging from 0 to 1200 in Australia, provided by credit reporting agencies. - read more
Need Help Finding a Loan?
Find out now if you qualify and compare
rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without obligation. We respect
your
privacy.
Knowledgebase
Conventional Loan: A type of mortgage loan that is not insured or guaranteed by the government.
