Tuesday, August 15, 2006

Relaxed and comfortable: affordability of housing dives

Houses are becoming increasingly out of reach to homebuyers, with another fall in affordability across the nation sparking calls for the states to urgently release land for new homes.

Across Australia, affordability for first-time homebuyers fell 5.3 per cent during the June quarter, leaving them 6.1 per cent worse off since Christmas.

Homebuyers will also have to commit 27.9 per cent of their income to mortgage repayments, which now average more than $2000 a month for the first time.

Affordability fell in all capital cities as well as regional areas of NSW, Queensland and South Australia.

"With every likelihood that affordability will decline further in coming quarters, the need for an urgent and radical rethink on new housing supply has never been greater," Housing Industry Association economist Simon Tennent warned.

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