The Housing Industry Association’s housing affordability index has worsened in the city despite record low interest rates.
The HIA’s report, which measures the capacity of households to service typical mortgages, found 1.74 average full-time adult wages are now required to affordably service a standard loan on a median-priced home in Sydney, the highest multiple since 2010.
Nationally the multiple was 1.28 average full-time adult wages.
Soaring property prices and sluggish wages growth have combined to make housing less affordable. The strong pace of dwelling price growth and relatively weak earnings growth meant home purchase has “moved beyond the reach of a greater number of Australian households”.