Aussies driven into working second jobs as mortgage costs bite

According to data from realestate.com.au, housing affordability has fallen to its lowest level on record, with households earning a median income of about $125,000 a year only able to afford 12% of homes sold across the country.

Record-high home prices in 2025 combined with higher interest rates could not offset income growth or recent price softening, leading to the affordability decline.

An average-income household would need to spend 35.5% of their income on mortgage repayments in FY26 – the highest share since 1989 (37.5%) and a lift from the levels seen during the Global Financial Crisis (33.3%).