Real Estate Institute of Australia (REIA) has crunched the numbers and found that housing
affordability has been on the decline for the past two decades and will continue to be an issue if
household income does not increase.
REIA's new report, Housing Affordability Report: the past 20 years, shows that at the start of
the 21st century 1 the weighted average proportion of income required to meet loan repayments has
increased from 27.2% to a staggering 35.7%.
REIA President Adrian Kelly said while housing affordability is on the decline, it was least
affordable back in the September, 2008 where 45.8% of income was required to service a loan however as property prices
climb, it looks set to become a greater issue in the future.
"Go back two decades to March 2002 Australia was at its most affordable at 26.8% of family
income required to meet repayments," he said.
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