Falling property prices in capital cities have reduced the amount of time needed to save for a deposit for the first time in two years, but prospective buyers may be finding it harder to put money aside, according to the latest data from ANZ.
The ANZ CoreLogic Housing Affordability report found that since March the time needed for a median income household to save a 20 per cent deposit has fallen by about three months in Sydney and Melbourne to 13.7 years and 11.1 years respectively.
However, CoreLogic’s Head of Australian Research Eliza Owen said higher living costs mean prospective buyers, including renters, may not be able to divert as much money to a deposit.
“Renters in particular are facing persistent challenges in attaining affordable and secure housing as rents increased by 9.8 per cent nationally over the past year, the fastest rate on record,” Ms Owen said.
The report also found:
- The portion of income required to service rents has reached record highs in regional Australia with 34 per cent of income required to service rent on a new lease. This compared with 28.4 per cent of income across combined capital city markets.
- The portion of income required to service a new mortgage nationally increased to 44 per cent in June, the highest level since June 2011. In September 2020, 33 per cent of income was needed.
