
The total value of new housing loans in Australia continues to rise as housing affordability reaches its lowest point in almost three decades, according to the Real Estate Institute of Australia (REIA).
REIA President Leanne Pilkington said the latest Australian Bureau of Statistics (ABS) figures show the total value of new housing loans increased by 3.9% in July to $30.6 billion.
“Housing affordability is now more than a growing concern, with the proportion of family income required to meet loan repayments reaching significant levels,” Ms Pilkington said.
The latest REIA Housing Affordability Report reveals that the average loan repayment now consumes 48.1% of family income, placing housing affordability at its lowest level in almost 30 years.
Key findings from the ABS data include:
- The value of new investor loans rose 5.4% to $11.7 billion, 35.4% higher than July 2023
- Owner-occupier loans increased 2.9% to $18.9 billion, 21.4% higher than the previous year
- New owner-occupier first home buyer loans rose 0.8%, 19.7% higher than July 2023
Ms Pilkington attributed the surge in first home buyer activity to the ongoing housing shortage and pressure on rental markets.
“With the chronic housing shortage putting pressure on rents, first home buyers have found themselves competing in a tighter market, pushing them to act quickly despite higher borrowing costs,” she said.
The REIA, established in 1924, represents 85% of Australian real estate agencies and advocates for the industry, which comprises 46,793 businesses employing 133,360 Australians.