Australians are increasingly leaving the cities in search of more affordable housing, according to the latest PEXA Buyer Deposits Report.
The report reveals that it can now take up to 20 years for a single-income buyer with no family support to save a deposit for a median-priced house in New South Wales – assuming consistent saving and no financial shocks.
In Victoria, the estimated range is nine to 17 years, while in Queensland, buyers may spend between 10 and 20 years building their deposit.
As a result, younger Australians are relocating to regional areas. For instance, the report highlights a consistent annual outflow of 20,000 to 30,000 people from Sydney to regional NSW.
However, even these regional locations are now experiencing elevated loan-to-value ratios (LVR).
PEXA chief economist Julie Toth said this indicates that affordability issues are spreading beyond the cities.
“Regional towns show a high proportion of loans with LVRs above 80%, further stressing the difficulties faced by those trying to enter the market,” she said.
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