Decade of unaffordable house prices
WANT to buy a house? You’ll have to wait another ten years – if you’re lucky, according to new research.
A massive hike in median house prices across the country in the past decade - up 147 per cent to $417,000 - has far exceeded the 50 per cent rise in average incomes since 2001.
The result led to a ballooning of the housing price-income ratio from a manageable 4.7 in 2001 to 7.3 this year – a level deemed “severely unaffordable”
Sydney is still Australia’s the least affordable city but houses in working-class cities such as Wollongong and Newcastle are proving just as unaffordable.
A study by the National Centre for Social and Economic Modelling says house prices will have to remain flat for another 10 years, coupled with income growth, for houses to be affordable again.
Similar Posts:
- ‘House prices safe unless economy tanks’
- Caution keeps loan ratios down
- Sydney pricey? It’s tough buying anywhere
- Sydney pricey? It’s tough anywhere
- ‘Interest rates on hold until August’
