Why it's getting harder to buy a home | The Business | ABC NEWS

Housing affordability has never been worse in Australia, with it now taking more than a decade to save a standard 20 per cent deposit for a house in most capital cities, according to a new report.
Home prices have risen by nearly 50 per cent since the COVID-19 pandemic, pushing housing affordability to historically low levels.
The report from property research firm Cotality shows the costs of both buying and renting have climbed to levels beyond the reach of many Australians, with no respite in sight.
Interest rate cuts by the Reserve Bank of Australia (RBA) — a total of 0.75 percentage points, taking the cash rate from 4.35 per cent to 3.6 per cent this year — have done little to ease the pain, and have instead fuelled demand.
The Housing Affordability Report by Cotality — formerly known as CoreLogic — was based on figures as of September 2025.
It showed that three of four key national indicators hit record highs this year — the price-to-income ratio, years required to save for a deposit, and the share of income needed to rent.
ABC's chief business correspondent Ian Verrender says the banking regulator is alive to the idea that the surge in Australian property prices is a home-grown bubble, and APRA could soon move to protect the economy's financial stability.
He says Australia's housing market is the very definition of a bubble, fuelled by overly generous tax concessions, huge population growth and a banking system that has engaged in a symbiotic relationship with real estate.
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