Blocks are getting smaller, prices are getting larger

Housing affordability continues to deteriorate across most of the country, with a new report showing the average block size has shrunk 13 per cent in capital cities over the past decade. BUT the cost per square metre has not reduced - meaning buyers are effectively paying more -- for less.

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Key Points

• Domain's new Housing Affordability report shows Sydney is the most expensive city based on block size - costing an average of $2400 per square metre.
• The appetite for units amidst the cost of living crisis persists with prices outperforming houses in the December quarter in Sydney, Brisbane, Adelaide and Darwin.
• Melbourne unit prices are in the fastest annual decline in the city’s history. In Canberra, it's the steepest since 1997.

Ongoing interest rate rises have also played a major role in the housing affordability downturn, along with an increase in gas and electricity prices.

With power bill relief not coming into effect until the middle of the year, Australians will have to cut costs in other areas if they want to secure a home.