Report finds average house price has risen nearly 50% since 2020

ABC NEWS (Australia)

A new report shows it takes more than a decade to save a standard 20 per cent deposit for a house in most Australian capital cities. The report also details how much of people's pay packets are going to their housing in mortgage payments or rent.

Transcript

00:00These are hypothetical figures.

00:04We're taking the median dwelling value in different parts of the country, comparing

00:08that with modelled volumes of median household income specific to each region.

00:14And we're saying if the median household were to buy that property with a 20% deposit,

00:20average mortgage rates, hypothetically, what share of their income would they need?

00:24Nationally, we found 45% of median household income would be required to serve as a mortgage

00:31on the median dwelling value in Australia, which is now about $870,000.

00:36Even though that sounds extraordinarily high, it's down from 47% a year prior, which was

00:43the series high in this metric.

00:46And it's just demonstrating how much of a mismatch there really is between where incomes are

00:53and where dwelling prices are in Australia.

00:56So if you look at houses versus units, units are much more serviceable, with a portion

01:02of income required to service a loan sitting at about a third.

01:06If you look at houses, it's over 50%.

01:10When it comes to capitals versus regions, though, there's not much difference anymore.

01:14We've seen extraordinary growth in regional Australian house values over the past few years,

01:20and that puts both capital city and regional median dwelling values requiring about 45% of

01:26income to service a mortgage.

01:28So that's it, I'm the only 1 to 2.

01:35If the cost of housing isn't 50% of educational value, I'm sure you're not going to win.

01:39If we look at a 2, we're going to want people to pay back that money.

01:41So that's why that's the concept that has a lot of tax.

01:45So that's where the net worth of income is the main portion of the beef that you just

01:48can do in the lobby, because you can do more of alen throw-up.

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