As the federal election looms, many Illawarra voters will be taking into account the housing policies released by the major parties.
Tackling housing affordability going forward will be especially crucial in the Illawarra and South Coast, with a new report showing parts of the region are among the most unaffordable in the country to buy or rent a home.
A new report from Cotality, formerly known as CoreLogic, has investigated housing affordability across the federal electorates.
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"Housing has emerged as a pivotal issue in the upcoming federal election, with housing policies taking centre stage in the political debate and dominating discussion among voters," research director Tim Lawless said.
"And rightly so. An imbalance between housing supply and demand, alongside cost-of-living pressures, high interest rates and low savings has pushed the cost of owning or renting a home higher, placing immense pressure on many Australians, particularly first-time home buyers and renters."
Buying a home
The most unaffordable electorates to buy a home are mostly located in Sydney, with four of the top five and 12 of the top 20 most unaffordable electorates.
Across the country, the electorates of Cunningham and Gilmore have ranked among the most unaffordable electorates to buy a home.
The electorate of Cunningham ranked at No.17 nationally, while Gilmore ranked at No.19.
Cunningham consists of part of the Wollondilly Shire Council, and part of the Wollongong City Council area.
Gilmore consists of the Kiama council area, Shoalhaven City Council, and part of the Eurobodalla Shire Council.
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Mr Lawless said demand for commutable regional housing options has been high through the pandemic and beyond.
He also said while dwelling values have surged by about 40 per cent over the past five years, household incomes haven't kept pace, rising by about 19 per cent in Cunningham and 22 per cent in Gilmore and Whitlam.
"Despite recording a milder rate of value growth over the past five years than other electorates in the Illawarra region, Cunningham was the 17th most unaffordable electorate to buy a home nationally," Mr Lawless said.
"The lower affordability rates are due to housing values rising from a higher base. The 39.7 per cent rise in values over the past five years equates to a dollar value gain of $285,760, pushing the median value of dwellings just over the million-dollar mark.
"While Gilmore (43.9 per cent growth in values over past five years) and Whitlam (42.9 per cent) have a higher rate of medium-term growth, housing values remain lower relative to Cunningham.
"It's not surprising to see Cunningham topping the local unaffordability stakes, given the beachside location, high level of amenity and strong transport connections.
"Gilmore isn't far behind, with a dwelling value to income ratio of 10.8, the 19th most unaffordable electorate for buyers."
Nationally, the ratio of dwelling values to household incomes has been above six consistently since 2003, reaching a record high in 2022 and again in December 2024 at eight. A ratio of eight means a household on the median income would be spending eight times their annual gross income to purchase the median value dwelling.
"Whitlam, which spans Shellharbour as well as the southern part of Wollongong and Wingecarribee shows a slightly more affordable housing outcome, with a dwelling value to income ratio of 9.5, the 23rd most unaffordable electorate nationally," Mr Lawless said.
Rental affordability
The report also showed the most unaffordable electorates throughout the country to rent a home.
According to the report, the most unaffordable electorates to rent are concentrated in regional markets, especially regional Queensland and regional NSW.
In this instance, Cunningham ranked at No.15, while Gilmore was ranked at No.20.
Mr Lawless said rental affordability has also worsened. He said renters in all three Illawarra electorates were dedicating about 33 per cent of their income towards rental payments in 2019, rising to 37 per cent to 39 per cent by the end of 2024 as rents outpaced incomes.
"Rents haven't increased quite as much as housing values, but each of the three electorates have seen rents rise by more than 30 per cent over the past five years," he said.
"Cunningham was the 15th most unaffordable electorate to rent nationally, while Gilmore is ranked 20th and Whitlam 23rd."
