Discover the "Years to Own" Property Affordability Metric

The "years to own" metric determines property affordability by estimating the time needed for homeowners to fully repay their mortgage. This calculation is based on a standard 30-year mortgage term with current interest rates and median family income, assuming households contribute half of their income to mortgage repayments.

Higher values signify reduced affordability, while levels exceeding 30 years suggest borrowing capacity is exceeded.

Recent years have seen housing prices increase so drastically that property buyers in some suburbs will face repayment periods of up to 140 years due to their current income levels.

New South Wales was found to be the most unaffordable housing market in the country, with an average of 42 years required to pay off a home, followed by Victoria at 39 years, and Tasmania at 38 years.

HtAG Analytics discovered that housing affordability has continued to decline, especially in cities like Sydney and Melbourne. The new study examined the “years to own” metric using property prices, median family income levels and interest rates.

Strathfield NSW, topped the list of the most unaffordable house locations. Home buyers in the area face repayment periods of around 144 years on a typical mortgage based on median household income. Gerroa and Chinderah, all in NSW, also demonstrated notably high “years to own” levels.

For units, NSW's Soldiers Point and Byron Bay, along with Queensland's Noosa Heads, were the most unaffordable markets.

For a more in-depth analysis with heatmaps and detailed charts, please see the full article.