|Adjustments||Not Seasonally Adjusted|
|Source||Commonwealth Bank Housing Industry Association Australia|
|Release||Housing Affordability Index|
|Residential Building Permits||May 2019||14,436||14,336||#, SA||Monthly|
|Building Completions||2019 Q1||29,835,118||29,943,691||Ths. Ch. AUD, SA||Quarterly|
|House Price Index||2019 Q1||139.69||143.1||2011-2012=100 Index, SA||Quarterly|
|House Price Value||2019 Q1||528,586||538,245||AUD, NSA||Quarterly|
|Housing Starts||2019 Q1||28,485||27,511||#, SA||Quarterly|
|Non-residential Building Completions||2019 Q1||11,103,128||10,721,727||Ths. Ch. AUD, SA||Quarterly|
|Residential Building Completions||2019 Q1||16,585,118||16,977,172||Ths. Ch. AUD, SA||Quarterly|
|Residential Housing Starts||2019 Q1||17,315||20,711||#, SA||Quarterly|
HIA (Housing Industry Association) index measures accessibility to home ownership for an average first home buyer. It is measured by the ratio of average income per household to the income necessary to be able to meet repayments on an average established dwelling purchased by first home buyers (qualifying income). Thus an increase in the ratio represents an improvement in affordability while a decline represents a deterioration in affordability.
In calculating the indexis estimating the value of a mortgage repayment representative of someone who purchased a home during the reference period. This requires a number of assumptions. A mortgage repayment is dependent on the size of the loan, the prevailing mortgage interest rate, and the mortgage term.
Qualifying income is a notional amount at which mortgage repayments are equivalent to exactly 30 per cent of income (the lowest income level at which the mortgage repayment would be affordable):
The affordability index is calculated by dividing the actual level of earnings by the qualifying income:
The affordability index levels for all previous quarters have been revised to reflect the CoreLogic RP Data price series.