RBA: Saving a deposit the biggest housing barrier

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The Reserve Bank of Australia’s (RBA) submission to the House of Representatives Standing Committee on Tax and Revenue’s inquiry into Housing Affordability and Supply suggests that saving for a deposit is the biggest hurdle to home ownership.

The RBA shows that while the ratio of house prices to income has soared, especially across Sydney and Melbourne:

House price to income ratio

Actual mortgage repayments have shrunk as a proportion of income thanks to falling interest rates:

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Mortgage serviceability Housing loan repayments

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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.