CoreLogic Housing Affordability Report | Melbourne

The price-based housing affordability metrics have improved slightly over the June 2018 quarter due to some recent falls in median prices. Melbourne

While the quarterly improvement is welcome, there has been a significant decline in overall affordability over recent years as household income growth has lagged median price growth.

Over the past five years, median prices have increased by 41.5% and over the past decade they are 77.3% higher.

By comparison, household incomes are just 12.4% higher over the past five years and 34.7% higher over the decade, both of which are much lower than price growth.

A1

A5

SA3 Region Dwelling price to
income ratio
Yrs to save a 20%
deposit based on
saving 15% of
household income
% of household
income required to
service an 80% LVR
mortgage
% of household
income required to
rent a home
Banyule 9.3 12.3 49.3% 24.6%
Bayside 13.0 17.3 69.3% 27.0%
Boroondara 14.5 19.3 77.2% 23.5%
Brimbank 9.1 12.1 48.3% 27.5%
Brunswick – Coburg 9.2 12.3 49.1% 26.1%
Cardinia 6.6 8.8 35.0% 23.6%
Casey – North 7.9 10.6 42.4% 24.7%
Casey – South 6.7 9.0 35.9% 22.7%
Dandenong 9.7 13.0 51.9% 29.5%
Darebin – North 10.0 13.4 53.6% 28.4%
Darebin – South 10.3 13.8 55.0% 26.2%
Essendon 9.1 12.1 48.4% 24.0%
Frankston 8.3 11.0 44.1% 27.1%
Glen Eira 10.9 14.5 57.9% 25.0%
Hobsons Bay 9.6 12.8 51.0% 25.3%
Keilor 10.3 13.7 54.7% 26.4%
Kingston 9.8 13.1 52.4% 26.9%
Knox 9.5 12.7 50.8% 26.7%
Macedon Ranges 6.2 8.2 32.8% 22.1%
Manningham – East 9.8 13.1 52.4% 23.7%
Manningham – West 14.6 19.5 77.8% 30.9%
Maribyrnong 9.0 12.0 47.9% 24.8%
Maroondah 9.2 12.3 49.1% 25.2%
Melbourne City 7.9 10.5 41.9% 39.0%
Melton – Bacchus Marsh 5.8 7.7 30.8% 22.6%
Monash 13.9 18.5 73.9% 30.1%
Moreland – North 9.2 12.2 48.9% 26.6%
Mornington Peninsula 10.4 13.9 55.7% 29.8%
Nillumbik – Kinglake 7.8 10.4 41.4% 21.9%
Port Phillip 7.3 9.7 38.9% 25.1%
Stonnington – East 12.4 16.5 66.0% 21.9%
Stonnington – West 6.9 9.2 36.7% 25.4%
Sunbury 6.3 8.4 33.6% 22.8%
Tullamarine -Broadmeadows 7.8 10.4 41.5% 26.9%
Whitehorse – East 11.7 15.6 62.5% 26.7%
Whitehorse – West 14.2 18.9 75.7% 29.8%
Whittlesea – Wallan 7.8 10.4 41.6% 25.0%
Wyndham 6.4 8.5 33.9% 22.6%
Yarra 8.3 11.1 44.3% 27.2%
Yarra Ranges 8.3 11.1 44.3% 25.7%

Regional VIC 
graphic-mel-new

The cost of housing in regional VIC is continuing to rise which is resulting in reduced housing affordability.

In fact, the price to income ratio and years to save a deposit metrics indicate the worst affordability on record across regional Victoria.

Over the past five years, median prices have increased by 22.2% which is slightly greater than the 15.6% increase in household incomes.

Over the past decade, median prices are up 45.7% compared to a 36.0% increase in household incomes.

A3

A4

SA3 Region Dwelling price to
income ratio
Yrs to save a 20%
deposit based on
saving 15% of
household income
% of household
income required to
service an 80% LVR
mortgage
% of household
income required to
rent a home
Ballarat 5.2 7.0 27.8% 24.1%
Barwon – West 5.3 7.1 28.3% 23.6%
Baw Baw 6.2 8.2 32.9% 26.0%
Bendigo 5.2 7.0 27.9% 24.3%
Campaspe 4.7 6.2 25.0% 24.3%
Colac – Corangamite 5.1 6.8 27.2% 25.1%
Creswick -Daylesford – Ballan 6.9 9.2 36.6% 29.4%
Geelong 7.0 9.3 37.2% 26.4%
Gippsland – East 5.7 7.6 30.5% 29.2%
Gippsland – South West 7.2 9.6 38.4% 30.8%
Glenelg – Southern
Grampians 3.7 5.0 19.9% 22.5%
Grampians 3.4 4.5 18.2% 23.5%
Heathcote -Castlemaine – Kyneton 6.9 9.2 36.8% 28.2%
Latrobe Valley 3.8 5.1 20.4% 22.3%
Loddon – Elmore 3.6 4.8 19.1% 24.3%
Maryborough –
Pyrenees 4.7 6.2 25.0% 29.3%
Mildura 4.4 5.8 23.2% 25.4%
Moira 4.6 6.1 24.3% 24.6%
Murray River -Swan Hill 3.8 5.0 20.1% 24.0%
Shepparton 4.3 5.7 22.7% 23.4%
Surf Coast – Bellarine Peninsula 8.7 11.6 46.4% 27.5%
Upper Goulburn Valley 5.7 7.5 30.1% 26.3%
Wangaratta – Benalla 4.7 6.3 25.3% 25.1%
Warrnambool 5.2 6.9 27.7% 25.4%
Wellington 4.1 5.5 22.1% 22.5%
Wodonga – Alpine 5.0 6.7 26.7% 23.7%

You may also be interested in reading:

CORELOGIC HOUSING AFFORDABILITY REPORT | SYDNEY



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About

Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au


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