The cost of housing has been named the top concern of 2024. Picture: Brad Fleet

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Housing has been named the top concern of 2024 with costs now ‘out of control’ across Australia as struggling househunters are hit with a cruel $92,000 penalty.

Latest analysis by Mozo shows just how cruel the Australian housing market has become for those who are currently locked out of it, with the cost of taking two more years to save up a deposit coming in at around $92,000.

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That’s how much the average Australian home loan size has jumped in just over two years, far outstripping the potential savings that are possible by most savers during the same period without them going into major financial or personal distress.

Mozo’s 2024 Refinancing Report, out Thursday, warned costs were now “out of control” for a shocking 48 per cent of Aussies.

This comes as Canstar’s 2024 Consumer Pulse Report, also out Thursday, warned rising debt levels, evolving savings habits and the pressures of homeownership, borrowing and renting made the cost of housing named the top concern of Aussies this year, followed by food costs.

Mozo spokeswoman Rachel Wastell.

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Mozo’s latest analysis shows the average monthly repayment on mortgages went from $2,291 in 2022 to $4,428 in 2024, powering away thanks to not just higher interest rates but also big jumps in property prices.

“Queensland, Western Australia and South Australia have been hit hardest with rising property prices in these regions driving up the average home loan size by $83,770, $92,111 and $92,779 respectively,” according to Mozo property expert Rachel Wastell.

“The average home loan size in NSW has not shifted as much as other states, but mortgage holders in NSW are still facing the biggest monthly mortgage repayments on average, at $5,374 per month” with Victoria also not spared from increased repayments – estimated at more than $1,100 a month compared to two years ago.

Mozo analysed how mortgages have shifted between 2022 and 2024.

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Every state is feeling the pinch.

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It found that for those who have got home loans, interest rate rises and high inflation now had 48 per cent of respondents saying they felt out of control with their expenses.

As well “14 per cent of those with a home loan said they are not confident they can meet their mortgage repayments in the next 12 months. One in 3 (36 per cent) said they have borrowed money from family or friends to make ends meet.:

And it found 28 per cent of mortgage holders have even taken to borrowing money from family and friends to get by.

Canstar data insights director Sally Tindall. Picture: Tim Hunter.

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Canstar data insights director Sally Tindall said “younger generations are particularly struggling with housing costs and are predicting difficulty in covering bills”.

The report found that 27 per cent of renters said they were unable to save at all, while 35 per cent could not save as much as before due to the higher cost of living.

Of those who do own property, Ms Tindall said 4 per cent were considering selling due to unaffordable loan repayments, but the vast majority were considering buying an investment property when rates fall over the next one to two years.

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Variable home loan rates have more than doubled since May 2022, from 3.02 per cent to 6.73 per cent in December 2024 after 13 cash rate hikes by the RBA.

Mozo property expert Rachel Wastell warned against complacency in the current climate. saying with the cash rate on hold and three of the big four banks tipping no rate cuts until May 2025, there could be another five months of high repayments for mortgage holders.

A shocking two in every five Aussies with home loans in Mozo’s survey (41 per cent) did not know what their interest rate was.

“It’s a highly concerning number, given that your interest rate is the key factor in determining how much you spend on your mortgage, and therefore how much you’re able to save or spend on other items,” she said.

Ms Wastell urged househunters to shop around and negotiate on everything from the price they pay for their property to the mortgage they accept.

“A home loan is one of the largest debts you will probably face in your lifetime – it’s a great place to start,” she said. “Just a half a percentage point difference on a $600k mortgage could save you tens of thousands of dollars over the 25 year loan term.”

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