Housing affordability has deteriorated over the past year to reach its worst level since records began in 1995. First home buyers now rely on wealthy families or high-income jobs to enter the market, according to the latest housing affordability report from PropTrack.
Driven by high mortgage rates and increasing home prices, affordability further deteriorated this financial year to the point where a median-income household earning about $112,000 could afford just 14% of homes sold – the smallest share since records began. This share has declined from 43% in just three years.
