Home affordability in AustraliaPosted: March 5, 2010
Claims that home affordability is at disastrous levels appear to be exaggerated. The always interesting Christopher Joye points out today that the average Australian home price is $428,000 on Dec Qtr figures (median is $400,000).
Average Australian home prices are 4.6 times average (disposable) household incomes – considerably less than claims that prices are 7-8 times incomes. Australia’s mortgage default rate is only around one-tenth and one-quarter of US and UK levels, respectively.
These estimates relate to both city and regional areas and all dwelling types i.e. houses, apartments, terraces, etc. IIRC from an older post of Christopher’s, the price to income ratio for the capitals is around five.