Housing affordability drops across the country

Australia’s housing affordability has hit record lows, with home repayments in Greater Darwin costing just under 30% of the average income.

According to a new report from Cotality home values have drifted even further out of reach and the share of income needed to pay a mortgage has nearly doubled.

Despite the high prices, Darwin is actually recognised as the most affordable capital city in the country.

Cotality Head of Research Eliza Owen says a number of factors are responsible for the rise in prices.

“In short, the past five years combined extraordinary demand drivers with supply constraints, creating an extraordinary boom in both home values and rents,” she says.