House prices might now be falling, but Australians’ anxiety over housing affordability is not. Price falls of a few percentage points in Sydney and Melbourne are cold comfort to first home buyers. They are still paying 50% more than they would have five years ago.
Further price falls are likely, but even then housing will still be less affordable than it was two decades ago.
Home ownership rates are declining across Australia, especially among the young and the poor. An increasing proportion of low-income earners are in rental stress in all states except Queensland and Tasmania.
STATE HOUSING SCORECARD
Authors: John Daley, Chief Executive Officer, Grattan Institute