Overview

Buying a home in Australia has become harder than ever. Over the last few years, housing prices have grown much faster than people’s incomes, and it’s made owning a home feel out of reach for many. Back in 2020, almost half of all homes sold could be afforded by a typical household. Now, in 2024, it’s only about 1 in 7.

It’s not just buying, renting has become tough too. With vacancy rates at record lows and more people competing for fewer places, rent prices are climbing fast. A lot of Australians are now spending more than 30% of their income just to keep a roof over their head, which is a sign they’re in housing stress.

The government has announced plans to help, like building more affordable housing. But many experts think that unless we see bigger changes, like reforms to planning laws or major investment in public housing, the problem won’t go away any time soon.

This dashboard breaks down the key numbers behind the issue. You’ll see how housing costs have changed, how incomes have struggled to keep up, and what this means for affordability across the country.

CPI Housing vs Income Index

Key Insights

• Housing costs are rising rapidly: From 2018 to 2024, the Housing CPI jumped by 38%, reflecting rising mortgage repayments, construction costs, and rental prices. This sharp increase puts extra pressure on both buyers and renters.

• Wages haven’t kept up: Over the same period, the Income Index only increased by 15%, showing that incomes are not keeping pace with the cost of living.

• The affordability gap is widening: As housing costs grow faster than incomes, people are spending a larger share of their earnings on accommodation, leaving less for essentials like food, transport, and healthcare.

• Younger Australians are hit hardest: First-home buyers face the steepest challenges, often relying on financial support from family or delaying homeownership altogether.

• Long-term risks are growing: Without action, this trend could lead to more Australians experiencing housing stress, a rise in social inequality, and growing demand for public housing support.

• Conclusion: The data clearly shows that housing is becoming less affordable. Addressing this issue requires real change — from increasing supply to supporting fair wage growth — to keep homeownership within reach for the next generation.

Housing Affordability Index

Interpretation

• Affordability has reached record lows: As of 2024, only 14% of homes sold nationwide were affordable for a median-income household — down from 43% in 2020. That’s a steep decline in just four years.

• Rising mortgage burdens: Home loans are taking a much larger chunk of income, especially with higher interest rates. In some areas, households are now spending over half of their income on mortgage repayments.

• Deposit hurdles are growing: For first-time buyers, saving a 20% deposit can now take over 10 years — double what it took two decades ago. This pushes homeownership further out of reach for young Australians.

• Renters are under pressure: Vacancy rates are at historic lows, and rents have jumped sharply. Many renters are now classified as being in housing stress, spending more than 30% of their income just on rent.

• Supply shortfalls make things worse: Australia isn’t building homes fast enough to meet demand. Without serious investment in new housing, this gap will continue to grow.

• Conclusion: The affordability index shows just how strained the system has become. Without urgent reform — including wage growth, supply improvements, and housing support — the crisis is likely to worsen.

Detailed Data

Final Thoughts

• A growing crisis: The data shows that housing affordability in Australia has consistently declined in recent years, with both buyers and renters facing increasing financial pressure.

• Impact on households: Many people are now spending a greater share of their income on housing, leaving less for essentials like food, transport, healthcare, and savings. This has real consequences for quality of life.

• Need for action: Solving this problem requires more than short-term fixes. Governments, developers, and communities need to work together to increase housing supply, improve affordability, and ensure wages grow alongside living costs.

• Looking ahead: If things don’t change, future generations may find homeownership completely out of reach, and rental stress could become the new normal for millions of Australians.