Housing affordability improving

Housing affordability has continued to improve, after achieving a 10-year best result in June. Despite reports of surging house prices in Sydney, affordability rose 3.2% in the September Quarter to an index level of 75.1.

The Housing Industry Association-Commonwealth Bank Affordability Report says regional Australia improved the most, up 3.4% to 78.2, while capital city affordability rose 2.6% to 72.2. Every capital city enjoyed some level of improved affordability, led by Hobart (+10%), Canberra (+6.3%) and Perth (+3.2%).

Sydney, which has been reporting strong capital gain figures, rose just 0.5%. Capital city affordability was 15.2% better than it was 12 months ago, while regional affordability improved 17.4%.