In December 2023, the average dwelling price in Australia increased to $933,800, marking a 4.8% rise from the previous year.

An anticipated 10% hike in dwelling prices by June 2024 is expected as housing loans continue to surge.

The growth in housing prices has been predominantly in Queensland, Western Australia, and South Australia.

Wage growth and average household disposable income have not kept pace with rising housing costs, only increasing by 12% and 16% respectively since 2019.

The ratio of average dwelling price to annual household disposable income per capita has worsened, from 13.5 times in 2020 to 16.4 times.

With interest rates 3.5 percentage points higher than in 2019, the affordability and manageability of housing loans are under stress.

Experts warn that without intervention to boost housing supply and revise tax incentives that distort demand, housing affordability will continue to deteriorate.