Both mortgage and rental affordability worsened over the March quarter of 2024, driven by an ongoing increase in mortgage rates and continued tightening in the rental market, a new report released today by ANZ and CoreLogic has found.
The ANZ CoreLogic Housing Affordability Report looks at the decreasing affordability of housing in Australia in the first quarter of 2024, for both renters and owners.
The key findings include:
- The portion of income required to service median new rents reached a new high of 32.2 per cent nationally in March 2024.
- The demographic of private renters is shifting to higher-income earners, due to long-term declines in the rate of home ownership.
- The increase in private rents in lower cost markets has absorbed the recent $48 minimum wage increase set by the Fair Work Commission.
- The portion of median income required to service a new mortgage reached a series high of 48.9 per cent nationally in March 2024.
- Nationally, CoreLogic estimates the time to save a 20 per cent deposit has increased to 10.3 years for a median household income, assuming an annual savings rate of 15 per cent.
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