Housing affordability has taken centre stage in the federal election, with voters and politicians focused on the widening gap between income and housing costs.
CoreLogic research director Tim Lawless (pictured) said the affordability crisis isn’t new—but it’s worsening.
“Housing affordability challenges have been with us for a long time and most economists agree that policies announced in the lead up to the election are more focussed on applying a band-aid to the symptoms of housing affordability rather than addressing the underlying issues that have created such an unaffordable housing sector: a long running undersupply of appropriate housing relative to demand,” Lawless said.
According to CoreLogic’s four key housing affordability measures, all were at or near record highs for unaffordability by the end of 2024.
The national dwelling value-to-income ratio climbed to 8 in December 2024, a record high. That means the average household needs eight times its gross income to purchase the median home.
Mortgage serviceability metrics are also deteriorating. Since 2002, households have generally needed more than 30% of gross income to service a new loan. By the end of 2024, that figure exceeded 50%, even with a 20% deposit.
“The only respite was in 2020, when interest rates fell to emergency lows and housing values hadn’t yet rocketed higher,” Lawless said.
It now takes a median-income household an estimated 10.6 years to save a 20% deposit, assuming they save 15% of their income—an increasingly difficult target amid persistent cost-of-living pressures.
Rental stress has also intensified, with PropTrack reporting a 1.6% rise in the national median rent to $630 in March. CoreLogic said renters now spend a record one-third of their income on rent.
This issue is particularly acute for younger Australians, who now rank housing affordability and rental stress as more important than jobs, superannuation, or energy policy. According to a 2025 Money.com.au survey, 17% of voters under 40 cite access to homeownership as their top concern after cost of living, while 32% are renters and 13% plan to buy within the year.
Electorate-level data shows Bradfield (covering North Sydney and Hornsby) as the most unaffordable in the country, with a value-to-income ratio of 16.5—a position it’s held since late 2018.
In comparison, Wentworth, while containing ultra-premium suburbs like Vaucluse, benefits from higher housing density, with 69% of dwellings classified as units (vs. 40% in Bradfield), helping offset costs.
“It’s a timely reminder about the affordability benefits that a diverse range of housing stock can provide,” Lawless said.
Outside the capitals, Richmond in northern NSW is now the fifth most unaffordable electorate nationwide, with a dwelling value-to-income ratio of 12.4, the highest among all regional electorates.
“Before the pandemic, the electorate of Richmond was ranked 21st most unaffordable nationally; however, significant value growth through the pandemic saw affordability metrics across most lifestyle markets worsen substantially,” Lawless said.
The Solomon electorate in Darwin is currently the most affordable electorate for purchasing a home, thanks to a mix of relatively low prices and higher local incomes.
In contrast, Parkes (NSW) has the lowest median dwelling value, but lower incomes mean housing affordability is more constrained.
Among capital cities, Melbourne electorate is the most affordable to buy, with a dwelling value-to-income ratio of 4.7, and the highest proportion of units (almost 80%).
Mortgage repayments for the average buyer in Melbourne take just under 30% of gross income, and it would take 6.3 years to save a 20% deposit, CoreLogic reported.
Electorates like Lalor and Hawke in Melbourne’s west demonstrate how greenfield housing developments help ease affordability. These areas have very low unit densities—just 8.3% and 7.5%—and rank among the top 20 most affordable electorates nationally.
The Grattan Institute recently emphasised that increasing medium-density housing (such as townhouses and low-rise apartments) in inner and middle suburbs could be key to unlocking affordability, as infrastructure is already in place and demand is high.
The top 20 most unaffordable electorates for renters are largely concentrated in Regional Queensland and Regional NSW, particularly along the Eastern Seaboard.
“Richmond (Northern NSW) and McPherson (Gold Coast) topped the list, with a rental household on the median income requiring more than 45% of their gross annual household income to service median rent,” Lawless said.
In Adelaide’s Hindmarsh electorate, the most unaffordable capital city rental market, median rent has surged to $637 per week, with households needing 35.1% of income to cover rent.
Melbourne’s outer western suburbs offer the best rental affordability among capitals, where the median-income household spends less than 25% of gross income on rent.
The ACT’s three electorates—Canberra, Fenner and Bean—are also ranked among the top 20 most affordable for renters, thanks to robust unit supply and relatively moderate rental growth.
