Housing affordability in Brisbane improves based on household incomes to dwelling prices ratio
The housing market is seeing more affordability with the ratio of household incomes to dwelling prices as the basis, this is all according to CoreLogic’s latest housing affordability report.
Nationally, the ratio went down over the June quarter to 6.81 from its record high during the March 2018 quarter of 6.84. This ratio means that the dwelling price of a typical Australian household is about 6.8 times more than their gross annual income. The improvement in affordability can be attributed to the rise in household incomes which improved by a small 0.3% during the March to June quarter. Meanwhile, dwelling prices went down by 0.2% over the quarter basted on the change in median selling price.
While there are a lot of affordability pressures in other capital cities like Sydney or Melbourne, the Brisbane market, however, is facing lesser pressures. With the dwelling price to income ratio at 6.0, Brisbane is one of the few regions that has a dwelling price to income ratio that is 10 or higher.
The federal election is fast approaching, and there will be a lot of talks about housing. Always at the centre of political discussion, housing comprises almost 55% of household wealth across the country, so there’s no doubt voters would like to hear what candidates have to say about this very important topic. The general public is still longing for the Federal Government to go beyond topics of negative gearing and capital gains tax consessions, and do more work about housing affordability solutions.
Source:
https://www.corelogic.com.au/news/highs-and-lows-housing-affordabilityutm_source=Newsletter&utm_medium=Email&utm_campaign=PPulseArticle_20181002