Even Queensland households earning $200,000 are struggling to pay a mortgage without help from the bank of mum and dad, with alarming new figures showing housing affordability is at its worst since the GFC.

Low income earners are now completely locked out of the housing market across the state, and to make it even worse, the time it takes to save for a mortgage deposit in Queensland is the longest on record, according to PropTrack’s 2024 Housing Affordability Index.

It is now more unaffordable to own a home in Queensland than it was during the GFC. Picture: John Gass.

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The findings, released today, show a median-income Queensland household with a mortgage could only afford to buy 15 out of every 100 homes on the market — the lowest number since 2008.

Renting households are doing it even tougher — only being able to afford one in 10 homes for sale right now.

Households earning $200,168 can only afford to buy half of all the homes for sale in Queensland right now, while you’ll need an annual income of $639,461 to be able to own nearly all properties out there at the moment.

Households on the median Queensland household income could only afford to own 15 per cent of all homes for sale in the state right now. Picture: John Gass.

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It’s almost impossible to get into the market for households earning $89,438 a year, with only one in 10 homes affordable.

“It takes just under five-and-a half years worth of saving for an average income household to save a 20 per cent deposit for a median priced home, and that’s its highest level we’ve ever seen for Queensland,” PropTrack senior economist Angus Moore said.

“I think that really highlights that the kind of significant wealth needed to crack into the market as a first time buyer, particularly given the rapid increase in home prices we’ve seen in Queensland over the past few years.”

Mr Moore said housing affordability in Queensland was the worst in 17 years and had “deteriorated really rapidly” since the pandemic.

PropTrack senior economist Angus Moore.

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“That said, unlike New South Wales and Victoria, affordability is still a little better than we were seeing at the peak of the mining investment boom in 2008, when Queensland got pretty expensive, and interest rates were obviously very high in 2007/2008 — even more so than today,” he said.

“So, affordability is not the worst we’ve seen on record, though it’s it’s getting pretty close to that kind of period now.”

The Index assesses the share of homes that are affordable to purchase for households across

the whole distribution of incomes, locations and tenure types, using data dating back to 1995.

It found the cost of mortgage repayments for a new home in the state has increased 50 per cent in just two years, now making up a third of an average household’s income.

Megan and Paul Bell, with their kids Kyla, 3 and Arnika, 1, have just started the search for a new home in Brisbane, but will have to dig into their superannuation for a deposit. Picture: Liam Kidston

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Mortgage stress is usually defined by 30 per cent or more of a household’s income going towards mortgage repayments.

Mr Moore said tackling stamp duty reform would help free up some of the housing that could be put to better use.

“Stamp duty is a very significant cost and discourages people from downsizing, or from moving to an area that would better suit them, so that would also help, and is something that governments can look at.”

Mortgage Brokers AU CEO Shaun McGowan said high living and public transport costs made Brisbane the toughest capital city to save for a home deposit, according to their research.

“Public transport costs are notably high, at $197.35 per month, further squeezing disposable income,” Mr McGowan said.

“While saving for a deposit might take a bit longer, the lifestyle and amenities offered by Brisbane provide a compelling reason to call it home.”

The latest PropTrack Home Price Index found home prices grew nearly 14 per cent over the past 12 months in Brisbane.

PropTrack’s new Housing Affordability Index shows it’s never been more unaffordable to own a home in Australia. Picture: Gaye Gerard.

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“Brisbane has enjoyed phenomenal growth over the past few years, avoiding the interest rate-fuelled price falls seen in other cities and regions, even overtaking Melbourne as the second most expensive city in Australia,” PropTrack senior analyst Karen Dellow said.

“Double-digit growth in buy enquiries has created competitive conditions in Brisbane,

pushing up prices to unprecedented highs.

“Higher interest rates have reduced borrowing power, and with house prices moving

ever higher, affordability constraints are driving more buyers to purchase units — a

trend seen across Australia’s capital cities.”

Even buying a block of land has become more expensive.

Even buying a block land has become more expensive. Image: Sam Mooy.

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New research from Oliver Hume shows the average price of a block of land in southeast Queensland is now $380,640 — up 11 per cent in the three months to the end of June and 14.3 per cent over the 12 months to the end of June.

The average price of land rose nearly $38,000 over the quarter.

Oliver Hume chief executive officer project marketing Julian Coppini said prices across the southeast had climbed steadily over recent years and were expected to continue rising as the population increased.

“The southeast Queensland market is one of the strongest in the country, and we don’t see that

changing any time soon,” he said.

The latest ANZ Housing Affordability Report shows the difference between Melbourne and Brisbane’s median home price has widened considerably, with Brisbane now much less affordable.

ANZ economist Madeline Dunk said Melbourne was gaining an affordability advantage on other capital cities, which presented a silver lining for buyers.

In March 2020, the difference between the Melbourne and Brisbane median home price was 36.6 per cent, but in August 2024, the Melbourne median was 11.3 per cent lower.

“Melbourne residents, who may have considered moving to Brisbane due to the housing-affordability attraction and warm weather, may reconsider,” Ms Dunk said.

“These shifting dynamics may slow interstate migration away from Victoria and encourage more people to Melbourne, which may lead to a lift in prices.”