![](\"https:\/\/fmsto.blob.core.windows.net\/cms\/images\/055\/0004_637749665013693023.jpg\")
<\/p>\n
Affordability has been a mixed bag for rental and sale markets across major cities and regional markets over the past year.<\/p>\n
The National Housing Finance and Investment Corporation (NHFIC)\u2019s latest study shed light on worsening affordability, particularly for the rental market, which remains most inaccessible for lower income earners across major cities and regions.<\/p>\n
In fact, the lowest income earners can only afford to rent 10% or less of properties across Australia.<\/p>\n
Interestingly, the two biggest cities \u2014 Sydney and Melbourne \u2014 have seen modest improvement to rental affordability over the past year.<\/p>\n
The impact of closed borders that drove a decline in net migration has offset the constricted supply as vacancy rates drop.<\/p>\n
\u201cFor example, renters in Sydney in the second income quintile can now afford 10% of properties, up from less than 10% in June 2020,\u201d the report said.<\/p>\n
This was the opposite in other major cities and regional areas, where a deterioration in rental affordability was more common.<\/p>\n
For instance, despite affordability rising modestly in Sydney and Melbourne, regional NSW and Victoria worsened.<\/p>\n
\u201cRenters in the third income quintile in regional NSW and Victoria can afford 30% of rental properties, down from 50% at June 2020,\u201d the report said.<\/p>\n
The most unaffordable rents, according to the report, were in Hobart, with renters at the lowest income brackets only being able to afford just 10% or less of rental properties in the market.<\/p>\n
Perth<\/a> also witnessed substantial deterioration in rental affordability \u2014 low-income earners can now only afford less than 10% of properties, down from 25%.<\/p>\n The report also highlighted how the pandemic has made conditions difficult for many would-be buyers looking to enter the housing market.<\/p>\n In fact, affordability among first-home buyers across most low-income brackets deteriorated over the year due to the strong house price growth.<\/p>\n Still, affordability remained relative and dependent on geographical locations.<\/p>\n In Perth, for instance, prospective first-home buyers experienced much more favourable opportunities to buy.<\/p>\n Low-income earners in Perth can afford around a third of properties in the market.<\/p>\n But the situation in Perth is a far cry from Hobart, where affordability has deteriorated the most. Four in five first-home buyers in Hobart can only afford 10% or less of properties.<\/p>\n Regional first-home buyers were put into different scenarios depending on location, with affordability improving in regional South Australia, Queensland, and Western Australia while deteriorating substantially in New South Wales, Victoria, and Tasmania.<\/p>\n \u2014<\/p>\n Photo by Micheile on Unsplash.<\/p>\n<\/p><\/div>\n
Do you need help finding the right loan for your investment?<\/strong><\/p>\n When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.<\/p>\n Just fill in a few details below and we’ll then arrange for a local mortgage broker\u00a0to contact you and work out what features or types of loans are right for your needs. We’ll even help with the paperwork. Plus an\u00a0appointment is free.<\/p>\n \u00a0<\/p>\n<\/p><\/div>\n <\/p>\nAffordability worsens for first-home buyers<\/h2>\n
\n Top Suburbs :
\n
\n
\n wentworthville<\/a>
\n
\n ,
\n
\n redcliffe<\/a>
\n
\n ,
\n
\n east victoria park<\/a>
\n
\n ,
\n
\n goulburn<\/a>
\n
\n ,
\n
\n willliamstown<\/a>
\n
\n<\/p>\n<\/p><\/div>\n
\n Get help with your investment property<\/h3>\n
\n our privacy policy here<\/a><\/div>\n<\/div>\n