realestate.com.au Housing Affordability Report – 2026

The realestate.com.au Housing Affordability Report shows affordability deteriorated to a record low in 2026. The findings are based on the realestate.com.au Housing Affordability Index – the most comprehensive measure of housing affordability in Australia – which assesses the share of homes that households across the whole income distribution can afford to purchase.Affordability has reached a record low in 2026 financial year. Picture: GettyElevated home prices and higher mortgage rates, following the Reserve Bank’s three consecutive interest rate hikes in February, March and May, reduced borrowing capacity substantially.That has more than offset the income growth and softening of home prices towards the end of FY26. As a result, housing affordability has declined nationwide.Underscoring the challenging state of affordability, a typical-income household could afford to buy just 12% of homes sold across the country - the lowest on record, and below the previous low of 14% in the FY08.Affordability is particularly challenging for low-income households. Those at the 30th percentile of income, earning $76,000 annually, could afford to buy just 2% of homes sold in the past year, essenti...