Housing affordability hits record low as rate hikes outweigh falling prices
Housing affordability in Australia has plunged to its lowest level on record, with a household earning the median income of about $125,000 a year able to afford only 12 per cent of homes sold nationally in the last financial year, according to new data from realestate.com.au. Despite recent falls in property values, three interest rate rises by the Reserve Bank of Australia this year have deepened the affordability crisis, reversing a marginal improvement seen in 2025.
