REA Group Limited's data business, PropTrack, has released its annual Housing Affordability Report, revealing that while affordability in Australia has slightly improved in 2025, it remains close to record lows. The report is based on the PropTrack Housing Affordability Index, which evaluates what proportion of homes are accessible to households across the income spectrum. The analysis found that national median household incomes, now about $118,000 per year, allow such households to afford just 15% of homes sold in the 2025 financial year, a small improvement from 11% the previous year. This modest easing is attributed to higher incomes and lower mortgage rates following Reserve Bank interest rate cuts in February and May. Despite these positive shifts, mortgage serviceability and saving for a deposit are still significant challenges. Affordability is especially strained in New South Wales and South Australia, where median-income households can afford only 11% and 10% of homes, respectively. In contrast, Western Australia remains the most affordable state. The report also highlights that average-income households need to save for nearly six years to accumulate a 20% deposit on a median-priced home, underscoring the ongoing difficulties faced by prospective buyers.