Recent data indicates that only a handful of regions remain within reach for households earning a median or lower income.
The inaugural PropTrack Affordability Hotspots Report sheds light on regions across Australia where median income earners can still manage to purchase a home.
Leveraging PropTrack's Housing Affordability Index, the report categorises the housing affordability of all Statistical Area Level 3 (SA3) areas nationwide, ranking them from most to least affordable.
SA3 regions generally have a population of between 30,000 and 130,000 people and often closely align to large urban Local Government Areas, for example, Geelong.
The most affordable areas are predominantly situated in Western Australia and Queensland, with Perth's Kwinana securing the top spot.
| Capital city area | Region | State | Affordability Index | Share of sales affordable for median household | Median price |
| Kwinana | Perth - South West | WA | 0.79 | 20% | $500,000 |
| Gosnells | Perth - South East | WA | 0.71 | 16% | $520,000 |
| Armadale | Perth - South East | WA | 0.7 | 17% | $515,000 |
| Mandurah | Mandurah | WA | 0.68 | 17% | $545,000 |
| Belmont - Victoria Park | Perth - South East | WA | 0.68 | 22% | $550,000 |
| Swan | Perth - North East | WA | 0.65 | 14% | $555,000 |
| Rockingham | Perth - South West | WA | 0.65 | 10% | $555,000 |
| Melbourne City | Melbourne - Inner | VIC | 0.64 | 24% | $573,000 |
| Perth City | Perth - Inner | WA | 0.62 | 24% | $540,000 |
| Bayswater - Bassendean | Perth - North East | WA | 0.62 | 17% | $615,000 |
In Kwinana, a median income household can still comfortably afford 20% of homes sold in the past year, allocating up to 25% of their pre-tax income to mortgage repayments.
Affordability continues to be a driving force in Western Australia's market strength, with Perth experiencing the largest price growth nationwide over the past year.
Nine of the top ten SA3 areas are located in Perth, while Melbourne City claims the eighth spot.
Inner Melbourne boasts a significant share of units, increasing affordability for median to lower-income households.
A median income household in Melbourne City can afford 24% of homes sold, with additional affordable options in Essendon and Stonningham West.
However, for those in pursuit of houses, the western and northwestern regions offer the best affordability.
For property hunters eyeing affordable homes in regional areas, Queensland stands out as the most promising destination.
More than a third of regions where median income households can afford 20% of home sales are located in Queensland, with the Outback South region emerging as the most affordable hotspot in the state.
| Regional area | Region | State | Affordability Index | Share of sales affordable for median household | Median price |
| Outback - South | Queensland - Outback | QLD | 1.41 | 80% | $180,000 |
| Broken Hill and Far West | Far West and Orana | NSW | 1.32 | 77% | $190,000 |
| Wheat Belt - South | Western Australia - Wheat Belt | WA | 1.26 | 70% | $260,000 |
| Bourke - Cobar - Coonamble | Far West and Orana | NSW | 1.2 | 66% | $210,000 |
| Outback - North | Queensland - Outback | QLD | 1.2 | 68% | $260,000 |
| Charters Towers - Ayr - Ingham | Townsville | QLD | 1.16 | 66% | $267,000 |
| Biloela | Central Queensland | QLD | 1.15 | 74% | $265,000 |
| Outback - North and East | South Australia - Outback | SA | 1.14 | 57% | $230,000 |
| Goldfields | Western Australia - Outback (South) | WA | 1.08 | 59% | $326,020 |
| Darling Downs - Maranoa | Darling Downs - Maranoa | QLD | 1.07 | 58% | $310,000 |
In this area, a staggering 80% of properties are within the budget range of median income households, marking the highest proportion of affordable homes nationwide.
Additionally, the majority of properties are affordable in the Far West and Orana regions in NSW.
Broken Hill, Far West, and the Bourke, Cobar and Coonamble regions are the most affordable areas in NSW, with 77% and 66% of properties respectively falling within the budget range of median households.
Despite their remoteness, these regions maintain high accessibility for households with median incomes, with over two-thirds of homes considered affordable.
Other regional areas nationwide, such as Western Australia's Wheat Belt and South Australia's Outback regions, also secure positions in the top 10 for affordability.
In Victoria, the Grampians region boasts the largest share of affordable homes.
However, the data underscores that affordability in capital cities has reached an all-time low, presenting significant challenges for property seekers to find suitable homes within their budget.
While regional areas offer more affordable options, reduced job opportunities in many of these locales poses challenges for securing employment with a good income.
The dwindling number of affordable regions for median to low-income households underscores the influence of existing wealth in accessing homeownership, given the prevailing high property prices nationwide.
