Australian homes less affordable

In today’s challenging financial climate people are looking to cut household costs wherever possible in an effort to stay afloat and in Australia as house prices have steadily increased affordability has inevitably declined. According to new research during the last five years housing affordability in the country has fallen by almost 5 per cent. Affordability is defined by the percentage of household income needed to cover the cost of monthly mortgage payments. Six years ago the average weekly mortgage payment on an Australian property was $325 and the average weekly household income was £1,025 by 2011 the average mortgage had increased by a massive 38.5 per cent to $450 during the same period household income had increased to $1,234 an increase of just 20 per cent. Some regions have been harder hit than others for instance in Queensland weekly mortgage repayments had climbed by more than 42 per cent while household income had grown by just 19.5 per cent.