housing affordability crisis worsens

New figures out today show housing affordability at its lowest level in nearly a quarter of a century.

The Housing Industry Association (HIA) Housing Affordability Index fell nearly 3 per cent in the June quarter and it is now 6.5 per cent lower than a year ago.

HIA managing director Ron Silberberg says last week's interest rate increase will only exacerbate the situation.

"The typical first home price is now in excess of $420,000 and the income required to service a loan on that house is about $100,000," he said.

"With interest rates having increased, that is a further blow."

Dave R.