12 May 2022
ANZ CoreLogic Housing Affordability Report 2022
A guide to the trends and main drivers of housing affordability across Australia.
12 May 2022
IN CHARTS: is renting out of reach in regional Australia?
As Australians become accustomed to the COVID-19 pandemic and adjust to life without lockdowns, greater attention is on property prices and the impact of a predicted decline in housing affordability.
Whether paying down a mortgage, saving for a deposit, attaining a mortgage or finding somewhere to rent, affordability is a combination of multiple metrics.
" The increase in the dwelling value to income ratio was largest across regional Australia, where property prices have risen substantially more than incomes."
However, overall, the latest ANZ-CoreLogic Housing Affordability report shows rental affordability has hit a record low in regional Australia with 34 per cent of income required to service rent on a new lease.
According to the report, the cost of renting is now almost on par with the cost of buying. In some ‘lifestyle’ markets, the median household income earners would hypothetically have to spend more than half their income for the median weekly rent value.
While higher rent means increased investment returns for property owners it also creates affordability challenges for anyone renting or saving a deposit to buy their first home.
The national median dwelling value is now an estimated 8.5 times the median annual household income level nationally. This is a record high and an increase from 6.8 times since the onset of COVID-19 two years ago.
Moreover, the increase in the dwelling value to income ratio was largest across regional Australia, where property prices have risen substantially more than incomes.
One of the most significant barriers to home ownership in Australia is the upfront costs for first homebuyers.
This includes the deposit hurdle where a 20 per cent deposit for the current median dwelling value across Australia is now $A147,795 and the time required to save a deposit has hit a national high of 11.4 years.
Eliza Owen is Head of Australian Research at CoreLogic
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.
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