The average first home buyer can afford to buy only 12 per cent of homes nationally, compared to almost a third of homes five years ago, as dwelling prices rapidly outpace the rate of wage growth.

Nationally, first home buyers with a household annual income of $150,000 in the 2020 financial year could afford 30 per cent of the housing stock – but the share of homes for the same group who are now earning $180,000 on average has considerably diminished, according to an analysis by KPMG.