Melbourne's housing crisis worsens due to cost-of-living pressures, interest rate hikes, population growth, and supply shortages.

Melbourne's housing crisis worsens as cost-of-living pressures and interest rate hikes decrease buying capacity and lead to a competitive rental market. Population growth post-pandemic and unaddressed supply shortages are expected to exacerbate the state's housing shortage. Melbourne's median house price in FY2024 is $933,500, while the borrowing capacity for a couple on a moderate income with no children is $497,310, presenting a significant affordability issue. Rising demand and supply imbalances may lead to further rent increases.

April 28, 2024
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