Since the 1990s, home values have increased at record rates. As a result, many Australians have given up dreams of owning their own home. But a new CoreLogic study has shown housing affordability is the best it’s been since 2016.
The ANZ-CoreLogic Housing Affordability report collects data relating to the property market, the economy and demographics of homeowners, and it shows that over the last two years, the cost of homes has been rapidly falling. At faster rates, even, than it had when housing prices rose.
Cameron Kuser from CoreLogic said in an interview, “The recent drop in property values follows a long period where prices increased at a much faster pace than household incomes.”
“We predict that falls will settle later this year, followed by modest price growth starting from 2020,” he added.
The study found that capital cities such as Darwin and Canberra are more affordable than other cities due to a prevalence of high household incomes and declining property values. But, on a whole, every Australian state saw improvements to housing affordability.
ANZ’s Home Owners Lead, Kate Gibson, said in an interview, “Buying a home is an aspiration for many Australians and for the first time, we’re seeing suburbs and towns in every state where it is more affordable to buy than to rent.”
“This shift, combined with record-low interest rates, is driving more first home buyers to look at entering the market. For the first time in fifteen years they are not chasing a rising market,” she added.
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