Driven by stronger rental demand and lower supply, rent values have continued to increase sharply across Australia.

But those living regionally or in smaller capital cities are copping the brunt of the rental affordability crisis according to the latest ANZ-CoreLogic Housing Affordability Report.

The portion of income required to pay rent in Hobart and Adelaide hit record highs in the March quarter, with renters needing to fork out 34.4% and 31.6% of their income respectively.

Regional renters saw affordability deteriorate more sharply when compared to combined capital city renters, as the household income required to meet rental payments hit a record high of 34% over the past quarter.

This is compared to average capital city renters who require 28% of their income.

The portion of household income required to meet rental payments now sits at 30.6% on a national level. 

According to the report, rental serviceability has deteriorated most rapidly across the Richmond - Tweed market including Byron Bay.

Specifically, the portion of income required to pay median rents is now 53% in Byron Bay. 


Housing values 8.5 times higher than household income

The national median dwelling value is now an estimated 8.5 times higher than the median annual household income - a new record high.

This can be compared to pre-pandemic levels when housing values were 6.8 times the average household income.

From March 2020 to March 2022, the value to household income ratio regionally also increased form 5.9 to 7.9 - faster than the increase in capital cities.

This is while median weekly income in capital cities are around 32.6% higher than regional Australians' incomes. 

The capacity to pay and compete for regional housing on a capital city dwellers' income likely contributed to the rising housing costs in regional Australia according to the report.


Saving for a deposit now takes 11.4 years

Years needed to save up 20% for a deposit reached a record high of 11.4 years, assuming a household saves 15% of its income per annum.

Sydney home buyers would need to save the longest - years required to save a 20% deposit reached a record high of 14.1.

Based on the current median dwelling value in Australia - which is $738,975 - first home buyers would need to save $147,795 according to ANZ and CoreLogic.

The portion of household income required to service new mortgage repayments now sits at 41.4% nationally.

This is above the decade average of 36.5% but is below the record high experienced in March 2008.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.09% p.a.
6.11% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Kylie O'Sullivan on Unsplash

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