aussie housing unaffordable

The building industry says housing affordability is at its lowest level on record.

The Commonwealth Bank and the Housing Industry Association (HIA) say their affordability index for first home buyers has dropped for the fourth time in a row.

They say it is due to rising house prices and interest rates.

Affordability fell by 5.5 per cent during the December quarter, bringing the index to almost 98 points.

The association says it is the first time the index has dropped below 100 since it was started in 1984.

Affordability fell in all metropolitan and regional areas, except for regional Victoria.

The HIA says the affordability of houses in Queensland has reached "desperate" levels. The latest figures shows homes in the state are now less affordable than ever before.

The HIA's Warwick Temby says a number of factors are conspiring to push people out of the market.

"House prices are continuing to go up, not as strong as they were, and people's incomes are not growing like they used to either," he said.

"So the combination of all of those things is that we've got record lows in housing affordability."

The survey also found housing for first home buyers is now cheaper in Sydney, than in Perth.


Dave R.