The price-based housing affordability metrics have improved slightly over the June 2018 quarter due to some recent falls in median prices. 
While the quarterly improvement is welcome, there has been a significant decline in overall affordability over recent years as household income growth has lagged median price growth.
Over the past five years, median prices have increased by 41.5% and over the past decade they are 77.3% higher.
By comparison, household incomes are just 12.4% higher over the past five years and 34.7% higher over the decade, both of which are much lower than price growth.
| SA3 Region | Dwelling price to income ratio |
Yrs to save a 20% deposit based on saving 15% of household income |
% of household income required to service an 80% LVR mortgage |
% of household income required to rent a home |
| Banyule | 9.3 | 12.3 | 49.3% | 24.6% |
| Bayside | 13.0 | 17.3 | 69.3% | 27.0% |
| Boroondara | 14.5 | 19.3 | 77.2% | 23.5% |
| Brimbank | 9.1 | 12.1 | 48.3% | 27.5% |
| Brunswick – Coburg | 9.2 | 12.3 | 49.1% | 26.1% |
| Cardinia | 6.6 | 8.8 | 35.0% | 23.6% |
| Casey – North | 7.9 | 10.6 | 42.4% | 24.7% |
| Casey – South | 6.7 | 9.0 | 35.9% | 22.7% |
| Dandenong | 9.7 | 13.0 | 51.9% | 29.5% |
| Darebin – North | 10.0 | 13.4 | 53.6% | 28.4% |
| Darebin – South | 10.3 | 13.8 | 55.0% | 26.2% |
| Essendon | 9.1 | 12.1 | 48.4% | 24.0% |
| Frankston | 8.3 | 11.0 | 44.1% | 27.1% |
| Glen Eira | 10.9 | 14.5 | 57.9% | 25.0% |
| Hobsons Bay | 9.6 | 12.8 | 51.0% | 25.3% |
| Keilor | 10.3 | 13.7 | 54.7% | 26.4% |
| Kingston | 9.8 | 13.1 | 52.4% | 26.9% |
| Knox | 9.5 | 12.7 | 50.8% | 26.7% |
| Macedon Ranges | 6.2 | 8.2 | 32.8% | 22.1% |
| Manningham – East | 9.8 | 13.1 | 52.4% | 23.7% |
| Manningham – West | 14.6 | 19.5 | 77.8% | 30.9% |
| Maribyrnong | 9.0 | 12.0 | 47.9% | 24.8% |
| Maroondah | 9.2 | 12.3 | 49.1% | 25.2% |
| Melbourne City | 7.9 | 10.5 | 41.9% | 39.0% |
| Melton – Bacchus Marsh | 5.8 | 7.7 | 30.8% | 22.6% |
| Monash | 13.9 | 18.5 | 73.9% | 30.1% |
| Moreland – North | 9.2 | 12.2 | 48.9% | 26.6% |
| Mornington Peninsula | 10.4 | 13.9 | 55.7% | 29.8% |
| Nillumbik – Kinglake | 7.8 | 10.4 | 41.4% | 21.9% |
| Port Phillip | 7.3 | 9.7 | 38.9% | 25.1% |
| Stonnington – East | 12.4 | 16.5 | 66.0% | 21.9% |
| Stonnington – West | 6.9 | 9.2 | 36.7% | 25.4% |
| Sunbury | 6.3 | 8.4 | 33.6% | 22.8% |
| Tullamarine -Broadmeadows | 7.8 | 10.4 | 41.5% | 26.9% |
| Whitehorse – East | 11.7 | 15.6 | 62.5% | 26.7% |
| Whitehorse – West | 14.2 | 18.9 | 75.7% | 29.8% |
| Whittlesea – Wallan | 7.8 | 10.4 | 41.6% | 25.0% |
| Wyndham | 6.4 | 8.5 | 33.9% | 22.6% |
| Yarra | 8.3 | 11.1 | 44.3% | 27.2% |
| Yarra Ranges | 8.3 | 11.1 | 44.3% | 25.7% |
Regional VIC
The cost of housing in regional VIC is continuing to rise which is resulting in reduced housing affordability.
In fact, the price to income ratio and years to save a deposit metrics indicate the worst affordability on record across regional Victoria.
Over the past five years, median prices have increased by 22.2% which is slightly greater than the 15.6% increase in household incomes.
Over the past decade, median prices are up 45.7% compared to a 36.0% increase in household incomes.
| SA3 Region | Dwelling price to income ratio |
Yrs to save a 20% deposit based on saving 15% of household income |
% of household income required to service an 80% LVR mortgage |
% of household income required to rent a home |
| Ballarat | 5.2 | 7.0 | 27.8% | 24.1% |
| Barwon – West | 5.3 | 7.1 | 28.3% | 23.6% |
| Baw Baw | 6.2 | 8.2 | 32.9% | 26.0% |
| Bendigo | 5.2 | 7.0 | 27.9% | 24.3% |
| Campaspe | 4.7 | 6.2 | 25.0% | 24.3% |
| Colac – Corangamite | 5.1 | 6.8 | 27.2% | 25.1% |
| Creswick -Daylesford – Ballan | 6.9 | 9.2 | 36.6% | 29.4% |
| Geelong | 7.0 | 9.3 | 37.2% | 26.4% |
| Gippsland – East | 5.7 | 7.6 | 30.5% | 29.2% |
| Gippsland – South West | 7.2 | 9.6 | 38.4% | 30.8% |
| Glenelg – Southern | ||||
| Grampians | 3.7 | 5.0 | 19.9% | 22.5% |
| Grampians | 3.4 | 4.5 | 18.2% | 23.5% |
| Heathcote -Castlemaine – Kyneton | 6.9 | 9.2 | 36.8% | 28.2% |
| Latrobe Valley | 3.8 | 5.1 | 20.4% | 22.3% |
| Loddon – Elmore | 3.6 | 4.8 | 19.1% | 24.3% |
| Maryborough – | ||||
| Pyrenees | 4.7 | 6.2 | 25.0% | 29.3% |
| Mildura | 4.4 | 5.8 | 23.2% | 25.4% |
| Moira | 4.6 | 6.1 | 24.3% | 24.6% |
| Murray River -Swan Hill | 3.8 | 5.0 | 20.1% | 24.0% |
| Shepparton | 4.3 | 5.7 | 22.7% | 23.4% |
| Surf Coast – Bellarine Peninsula | 8.7 | 11.6 | 46.4% | 27.5% |
| Upper Goulburn Valley | 5.7 | 7.5 | 30.1% | 26.3% |
| Wangaratta – Benalla | 4.7 | 6.3 | 25.3% | 25.1% |
| Warrnambool | 5.2 | 6.9 | 27.7% | 25.4% |
| Wellington | 4.1 | 5.5 | 22.1% | 22.5% |
| Wodonga – Alpine | 5.0 | 6.7 | 26.7% | 23.7% |
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