Aussie housing tumbles off affordability cliff


PropTrack has released some stunning charts showing that Australia’s median housing affordability is the worst in at least 30 years:

Affordability for households

As shown above, the decline in affordability is broad-based, impacting both higher and lower-income earners.

The next chart from PropTrack also shows that a median household in Australia can only afford 13% of homes sold – an extraordinary low share:

Australian share of home sales

The situation was nicely summed up by independent economist Tarric Brooker on Twitter (X):

“The median household can only afford a home in the 13th percentile today, compared with the 50th in 1999”.


“Even people with high incomes are now competing for median-priced homes”.

This data accords with recent analysis from Shane Oliver at AMP (published in The AFR), which shows the record gap between median home prices and capacity to borrow:

Australian capacity to pay

This reflects the combination of higher home prices and soaring mortgage repayments:

Housing debt servicing costs

The data is another shocker that highlights the monumental failure of Australian housing policy.

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.