TRANSCRIPT
The Great Australian Dream of owning a home is indeed a reality for some.
"I think you know, by the time, we'll be in here for Christmas, so that sounds great. I guess you know it comes to the point where you don't find houses like this often in the market, so you have to pay the premium to get it."
But home ownership is definitely an unfulfilled dream for many others, as Senior Economist at Proptrack, Paul Ryan explains.
"It's always been really challenging to break into the housing market but new data released today shows that its more challenging than ever to afford a home. At the same time, as home prices have increased over the past thirty years, it's harder and harder to save for a deposit. So first home buyers in particular are finding it particularly challenging."
Proptrack's latest report found households earning a median income of 105 thousand dollars can only afford 13 per cent of all homes sold across the country in the last year.
That's the lowest level since records began in 1995.
Low-income households which earn 64 thousand a year can afford just three per cent of homes.
Mr Ryan believes creating more homes is part of the solution.
"Housing affordability is in a really challenging space at the moment. And one of the positives we've seen has been a focus on housing supply as the solution to housing affordability. We need to build more homes because ultimately that is the way we are going to increase housing affordability in the future."
With a median home price exceeding a million dollars in Sydney, New South Wales continues to rank as the least affordable state, a title it's held for most of the past 30 years.
Following close behind is Tasmania and Victoria, while housing affordability is highest in Western Australia and Queensland.
"We also see relatively favourable housing affordability in Queensland still, despite the big run up in home prices over the past few years. So we're expecting continued strong northward migration from New South Wales and Victoria into Queensland to take advantage of relative affordability in Queensland."
Servicing a mortgage is said to be "close to as hard as it's ever been", sitting just below the peak in 1989.
Experts say without a focus on housing supply and other government initiatives, it's unlikely many first-home buyers would be able to enter the market.
