Housing affordability and availability
Home ownership provides substantial economic and social benefits. In addition to wealth creation and financial security, home ownership is the basis for a number of positive social, family and community outcomes.
Availability of affordable homes for purchase
This measure shows the number of homes built or sold that are affordable for low- and moderate-income households. Access to good quality, affordable housing is fundamental to wellbeing.
In 2019-20 in the ACT, 55 homes built or sold were affordable (per 1,000 low- and moderate-income households). This is the latest year for which this measure is available.
Over time, this figure has varied. In the latest available period, the ACT built or sold a greater number of affordable homes per 1,000 low-and moderate-income households than any other Australian jurisdiction (with the national figure being 33).
Data source
Chart description
Line graph of rate of affordable homes built or sold for low- and moderate-income households, in 2-year intervals from 2014 to 2020. In 2020, 55.1 homes built or sold (per 1,000 low- and moderate-income households) were affordable compared to 40.7 in 2018.
Technical notes
This measure relies on calculations independently prepared by the Australian Bureau of Statistics (ABS) for the Productivity Commission’s Report on Government Services. The calculations use the Survey of Income and Housing and ABS analysis of real estate and Valuer General data. The ACT does not separately calculate this information.
Low-and moderate-income households are those with incomes in the bottom 40% (low) to 60% (moderate). Housing costs are affordable when the household spends no more than 30% of their gross income on mortgage payments.
Affordable home purchase
This measure shows the proportion of median family income needed to meet the average repayments of new home loans.
This is important because it impacts how much money households have to spend on other things and can provide a signal of mortgage stress.
In September 2022, 31.7% of median family income was needed to meet average repayments on new home loans. This is lower than the Australian result of 42.2%. This suggests that housing is, on average, more affordable for families in Canberra than in most other parts of Australia. It also indicates that an income larger than median family income is needed to avoid living in mortgage stress on average new home loan mortgages.
Over time, people in the ACT are spending a higher proportion of family income on housing and this measure is now at its highest recorded level. The ACT increase aligns with increases seen in other jurisdictions.
Data source
Real Estate Institute of Australia, Housing Affordability Report.
Chart description
Line graph of the proportion of median family income needed to meet the average repayments of new home loans in the ACT, by quarter from quarter 3 2014 to quarter 3 2022. In September (quarter 3) 2022, 31.7% of median family income was needed to meet average repayments on new home loans compared to 24.9% in September (quarter 3) 2021.
Technical notes
Data is based on the median family income.
