Victoria named most affordable state as rates smash home dream

The great Australian home dream is crashing out, with affordability at record lows despite the Albanese government’s May budget tanking home prices. Victoria is now the most affordable state in the country for homebuyers, but house hunters are still worse off as soaring interest rates smash the home dream. REA Group’s latest Housing Affordability Report, released today, revealed that for a family earning the state’s typical $127,000 income, just 16 per cent of homes sold in the past financial year were within reach without going into mortgage stress. It’s even worse for lower income households, with warnings they may now only be able to afford a studio apartment — or an extremely regional home in need of work. RELATED: $65k blow: Melb houses worth less than 2021 Buyer turn-offs that wipe 40 per cent off a home’s value Albo warned: don’t make 213k home crisis worse It comes as the nation’s overall housing affordability plunged to a record low, leaving homebuyer hopefuls earning a typical $125,000 a year across the country able to access just 12 per cent of home sales across the country in the past year. The report gauges affordability based on an income bracket’s ability to pay a mo...