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Australian homes are set to become less and less affordable. Picture: Sam Mooy<\/p>\n
ANALYSIS<\/p>\n
Today, housing is at its most affordable point ever.<\/p>\n
Not the most affordable it ever \u2018has been\u2019 but the most affordable it ever \u2018will be\u2019. <\/p>\n
Tomorrow, it will be slightly less affordable, but still more affordable than in the days, months and years that follow.<\/p>\n
It\u2019s a big claim, but it\u2019s impossible to see how affordability can somehow improve from here. When REA Group data firm PropTrack launched its Housing Affordability Index (HAI) in 2023, it showed housing affordability was at its worst level in traceable history, in all capital cities except for Brisbane.<\/p>\n
In its second year in 2024, the index broke its own record for poor housing affordability and this time, Brisbane hit a new low too.<\/p>\n
RELATED: Rate hike threat weighs on Sydney home prices<\/a><\/p>\n \u2018Out of control\u2019: Brisbane house prices up $149k in one year<\/a><\/p>\n In 2025, affordability improved by the tiniest measure, thanks mainly to the year\u2019s three RBA rate cuts.<\/p>\n But in the half a year since the last HAI was released, things have changed again.<\/p>\n Home prices have had strong growth and have just hit a new national peak, according to today\u2019s PropTrack Home Price Index January 2026.<\/p>\n National home prices rose by 0.2 per cent over the first month of 2026, to sit 8.4 per cent higher than a year ago.<\/p>\n REA Group\u2019s executive manager of economics Angus Moore.<\/p>\n The median value of capital city houses in Australia is now $1.157 million, after growing by $110,200 since January 2025. <\/p>\n MORE: Melbourne home price shock ahead of rate call<\/a><\/p>\n Report author Angus Moore, REA Group\u2019s executive manager of economics noted that a change in some economic decisions had yet to majorly affect prices.<\/p>\n \u201cPrice of growth in 2025 was supported by three rate cuts, but a rate rise at the Reserve Bank\u2019s February meeting is now looking likely,\u201d he said. \u201cWhile the possibility of further hikes may weigh on the market, unemployment remains very low, which will support demand. At the same time, new housing supply remains limited, supporting home prices.\u201d<\/p>\n That \u201clikely\u201d rate hike on Tuesday will add to the pressure.<\/p>\n Affordability may have already hit rock bottom, but it\u2019s about to start digging. <\/p>\n December inflation numbers came in piping hot like an overpriced loaf of sourdough straight out of the oven.<\/p>\n<\/p>\n