Sydney’s status as the country’s least affordable housing market has been further cemented over the past six months as prices became more affordable elsewhere.
A new report showed national housing affordability has reached its best level in seven years, but the improved buying conditions did not affect NSW.
Much of the improvement was the result of a fall in interest rates.
Sydney’s higher house prices largely offset the impact of the lower lending rates.
Paying off a typical mortgage requires 35.4% of the average household’s income.
Victoria was the least affordable housing markets behind NSW, with average mortgage repayments accounting for 31% of median household income, down from 32.7% in March.
The average household in Tasmania and WA spent about 22% of its income on mortgage repayments, down 0.6% since March.
Mortgages in SA and Queensland typically require close to a quarter of an average household’s income.
In the ACT mortgage payments demand just under a fifth of median household income.