Perth bust drives housing affordability to 30-year high

Wednesday 5 February 2020

The epic collapse in Perth’s housing market, which has seen dwelling values collapse by more than 21% (see next chart) has predictably driven huge improvements in housing affordability.

According to the Housing Industry Association, Perth’s housing market is now the most affordable it has been in more than 30-years:

Buyers now require just 0.8 average incomes to service a mortgage, more affordable than at any point in HIA data going back to 1996.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.