A new Ethics Index shows housing affordability has become Australia’s second-highest ethical concern for 2025. It scored 39 – up there with issues like cost of living and cyber security because people increasingly see secure housing as a matter of fairness and access, not just economics. In short, many view a home as a basic right.
Fortunately, recent data finds some relief. The Real Estate Institute of Australia reports that the share of median family income needed for mortgage repayments fell to 47.7% in the June quarter. Rental costs also eased (down to 24.4% of income) for the third straight quarter. These gains were widespread – every state except Western Australia saw home loan affordability improve in the quarter.
As buyer’s agents, we see these trends up close. Young people feel the squeeze most – Gen Z scores highest on affordability concernsbrokernews.com.au. Many first-home buyers struggle to save deposits. On the bright side, lower interest rates and new government incentives are opening doors. For example, the RBA cut the cash rate in May, and expanded first-home buyer schemes are now available. However, location still matters – Western Australia was the only state with a drop in affordability last quarter.
Key Takeaways for Home Buyers
- Fairness & Access: Australians now consider housing to be a fundamental right. Buyers are concerned with fairness in the housing policy. Skilled buyer’s agents can advocate for this by finding deals and leading clients to affordable options.
- Younger Buyers: The pinch is hardest for young Aussies. Extra assistance with financing and strategy is needed for first-home buyers.” A buyer’s agent can explain the availability of grants and loan options and negotiating tactics that can make a deal happen, and plan “B” if it doesn’t.
- Improving Markets: Affordability is rising in most markets. Nationally, mortgage repayments now require 47.7% of family income, and rents have fallen, creating fresh opportunities in places like Tasmania and Queensland.
- Incentives & Rates: Recent rate cuts and support schemes are boosting buyers. The RBA’s May rate cut and expanded first-home programs are improving borrowing costs. Buyers can act now to lock in lower rates and 5% deposit deals.
- Location Matters: Each and every market differs. Western Australia saw its affordability drop last quarter, showing why you need to research each area. A good buyer’s agent knows which neighborhoods or towns give you the most for your money and have homes available.
Key2Dreamz helps buyers deal with these issues. Our agents in your area use facts and contacts to find homes you can afford and make offers that win. Call Key2Dreamz at +61 439 260 917 or set up a free consultation to begin looking for your home.