"Housing demand has slowed amid a growing gap between income, borrowing capacity, and home values, exacerbated by slowing economic growth and ‘higher-for-longer’ interest rates. One way to look at this divergence is to consider an 'affordable' purchase price for the median income household in Australia, based on 30% of before-tax income spent on a mortgage, assuming current interest rates and a 20% deposit. This derived affordable price would be $513,000, while the national median dwelling value is $815,000 (Figure 2)."
