Overall housing is now twice as unaffordable in terms of repayments, and almost as unaffordable in terms of deposits as it was in the 10 years between 1994 and 2004, which is 100 on our model. Our index for repayments is currently at 209.77 and for deposits at 191.5.
Tagged: housing affordability
The Queensland government should scotch any idea of capping rentals if they want to help people searching for a house to rent, and actually do something, rather than convening more housing summits.
It’s time for the prime minister to step up and rule out tinkering with the housing market and get on with the job of creating more supply. In particular he must rule out any changes to negative gearing.
The AIP Housing Affordability Index for the September Quarter 2022 has been released. It shows record repayment unaffordability over the history of the index although it is a little easier to save the deposit.
House prices could fall by somewhere between 18 and 32 percent by June 2023 according to modelling using the AIP’s Housing Affordability Repayments model.
Despite interest rate rises, house prices have retained most of their value, which has led to a decrease in housing affordability across Australia.
The Queensland Housing Summit was an admission of failure and did nothing to address the real problems in housing affordability in Queensland.
Housing repayments were more affordable in the first quarter this year than the last quarter in 2021, but interest rate hikes since then will reverse this.
The Q2 2022 Australian housing market saw a general increase in the Repayments Index, indicating a decrease in affordability, and a decrease in the Deposit Index, indicating a fall in house prices, making it easier to save for a deposit.
Housing affordability continued to decline in the December quarter last year. This is mainly due to a strong increase in property prices in most cities, although it was only moderate in Australia's largest market, Sydney.