Melbourne has bucked the housing affordability trend, at least by some measures, with the time to save a deposit and value-to-income ratio for the city both below long-term averages. ANZ and CoreLogic released their latest Housing Affordability Report yesterday, showing that it takes 10 years to save a 20 per cent deposit for a home loan in Australia – up from an average of 9.2 years over the past 10 years. In Sydney it takes 12.6 years, compared with the 10-year average for that city of 11.7 years. In all other state and territory capitals, except Melbourne, the current measure of years to save a deposit is above the 10-year average. In Melbourne it takes 9.6 years to save a 20 per cent deposit, compared with the city’s 10-year average of 9.9 years. According to the report, there have been more modest movements in Melbourne dwelling values because of greater supply over the past 15 years. Australian Bureau of Statistics building activity data show there were around 850,000 dwelling completions in Victoria in the 15 years to June 2023, which is 21 per cent higher than in New South Wales over the same period. On other measures presented in the report, the value-to-income ratio shows that Melbourne and Darwin are the outliers, with VTI ratios currently below 10-year averages. The measure of portion of income required to service a new mortgage shows the ratio well above 10-year averages in all capital cities. In Sydney the ratio is 58.1 per cent – up from a 10-year average of 43.5 per cent. Melbourne is relatively affordable on this measure, with its ratio of 44.4 per cent below that of Brisbane (44.8 per cent), Adelaide (48.5 per cent) and Hobart (46.4 per cent). Perth, Darwin and Canberra have ratios of income required to service a new mortgage that are lower than Melbourne’s. The national average is 46.2 per cent – up from a recent low of 29 per cent in March 2020. The report also shows that units have stayed within a reasonable price range for new home buyers, while houses have moved out of reach. Prior to the pandemic, the 10-year average difference between house and unit values nationally was 7.3 per cent. Now it is 28.6 per cent. CoreLogic head of Australian research Eliza Owen said housing affordability was likely to worsen next year. Owen said: “Dwelling supply will continue to be strained by the high interest rate environment, which has reduced approvals and potential for new housing development in 2024.”