Housing affordability has shown welcome signs of improvement, according to the Real Estate Institute of Australia’s latest affordability report.
In the September 2025 quarter, the average loan repayment across Australia fell to 47.0% of median family income, down from 48.6% a year earlier. That marked the third consecutive quarterly improvement, helped by easing interest rate pressures and steady income growth.
Affordability continues to vary widely by location. Repayments ranged from 31.7% of income in the ACT to 55.1% in New South Wales, reflecting differences in property prices, borrowing sizes and household incomes.
Over the longer term, property prices have generally grown faster than wages, which has made entering the market more challenging – but has also supported strong wealth creation for homeowners over time.
Looking ahead, Domain has forecast house prices could rise by around 6% in 2026, with unit prices up 5%. While this would likely exceed average wage growth, it also highlights why early planning, realistic expectations and the right lending structure remain important for buyers.
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