💸 Aussie Households Now Hand Over 50% of Income for a New Mortgage

A fresh report by the National Housing Supply and Affordability Council has revealed a staggering cost burden on new homeowners, with the average Aussie household now required to dedicate half of their income to mortgage repayments.

This marks another blow for first-home buyers and renters hoping to enter the housing market amid rising home prices, stretched affordability, and a slowdown in new housing supply.

📉 Key Insights from the Report

• 50% of median household income now needed to meet mortgage payments for new loans (as of December 2024)
• 10.6 years is the average time required to save for a deposit
• 33% of income needed for rental costs for new leases
• Only 14% of homes sold last year were affordable for median-income households
• Australia’s median home price hit a record $805,000 in April 2025, up 3.7% year-on-year
• New housing supply fell short of demand, with only 177,000 new dwellings completed in 2024, against an estimated 223,000 needed

🚨 The Human Cost of Housing Affordability

Council chair Susan Lloyd-Hurwitz described the housing unaffordability crisis as having an “unacceptably high human cost,” forcing households to:

• Cut back on essentials
• Live further from jobs, schools, and family
• Settle for inadequate housing options

🏗️ The Supply Challenge

Australia is forecast to fall short of its five-year new housing target by a massive 262,000 homes. Experts, including Mike Zorbas of the Property Council, are calling for:

• Streamlined planning and approvals
• Improved productivity in construction
• More skilled workers and faster infrastructure delivery

🧠 What This Means for Home Run Players

For Home Run participants, this underscores the importance of understanding:

• Affordability metrics when assessing auction properties
• The supply gap and how it may continue to drive up prices
• The impact of interest rates and future market conditions on borrowing costs

Being aware of affordability trends and supply bottlenecks could help you predict which areas will remain competitive and where opportunities may lie.