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.
In October 2025, Australian household spending experienced a notable increase of 1.3%, reaching A$78.4 billion. This marks the most substantial monthly rise in nearly two years, as reported by the Australian Bureau of Statistics. The surge was primarily driven by heightened expenditures on clothing, electronics, and hospitality services, spurred by year-end sales events. - read more
In a proactive move to address potential risks in the housing market, the Australian Prudential Regulation Authority (APRA) has announced a new policy set to take effect in February 2026. This policy will cap the issuance of high debt-to-income (DTI) home loans at 20% of new lending portfolios for authorized institutions. Specifically, loans where the borrower's debt exceeds six times their income will be subject to this limitation. - read more
Recent findings from a national survey conducted by financial comparison site Canstar reveal a concerning trend in Australia's personal debt landscape. While the proportion of Australians holding non-property-related personal debt has decreased, those who do carry such debt are facing higher average amounts. In 2025, the average personal debt has risen to $17,634, up from $15,179 in previous years. - read more
Applying for a loan can be a daunting process, filled with numerous requirements and potential pitfalls. However, avoiding mistakes is crucial to boost your chances of approval and secure the best possible terms. Making errors during your application can lead to unnecessary delays, higher interest rates, or even denial. - 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
Stepping into the realm of loans and finance can be a daunting endeavor, but it all begins with a solid foundation in personal budgeting. Understanding how to manage your money effectively is not just a skill—it’s a crucial aspect of securing financial stability and achieving peace of mind. By tuning in to your finances and preparing a thought-out plan, you’re setting the stage for a well-informed loan application process. - 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
Asset-Backed Security (ABS): A financial security backed by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables.
