The average Aussie mortgage is now almost 50% of income

Australians are spending 48 per cent of their household income on home loan repayments. 

And conditions are even tighter in New South Wales, where home loan repayments amount to 57.9% of family income. 

The latest stats come from the Real Estate Institute of Australia (REIA)’s Housing Affordability Report for the June quarter 2024. 

“The impact of rising inflation and interest rate increases has never been more apparent,” said REIA president Leanne Pilkington. 

“In real terms, for every dollar earned, just over 48 cents is going back into a home loan.” 

In fact, housing affordability in Australia has hit its lowest point since the REIA first began monitoring affordability in 1996. 

“While some small improvements were seen in Victoria, the Northern Territory and the Australian Capital Territory, housing affordability declines in all other states,” said Pilkington. 

At 32.4 per cent of income, mortgage costs in the Northern Territory remained the most affordable for homeowners, despite still being above the internationally recognised affordability standard of 30 per cent of income. 

In contrast, Queensland and South Australia were among the worst states for housing affordability, with families spending over 46 per cent of their income on mortgage repayments. 

The most expensive city in which to buy remains Sydney, where the median house now costs $1.66 million – a massive 58.5 per cent higher than the national median. 

“As we approach the next federal election, it is evident that political parties will need to do more to assist homeowners and renters navigate these post-pandemic economic challenges,” said Pilkington. 

“We call on all candidates to put housing first in their promises to voters.”