Australian Housing Affordability Hits Record Low Amid High Borrowing Costs

Australia's housing affordability has hit a record low, making it difficult for households to afford homes. According to realestate.com.au, a household earning a typical income of about A$125,000 can only afford around one in every 10 homes sold nationwide last financial year.

The latest figures show that median-income households could afford just 12% of all homes sold, houses and units combined. Mortgage repayments are now taking the biggest share of household income since 1989.

Stronger home prices last year and recent interest rate rises have offset some relief from softer values in certain parts of the market. The Reserve Bank of Australia's three rate increases in February, March, and May have increased mortgage pressures for households already stretched by high prices.