{
  "id": 19382427,
  "title": "Buyers ditch backyards for balconies as rates rise",
  "url": "https://urgent.news/2026/11/10/buyers-ditch-backyards-for-balconies-as-rates-rise",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-10T18:51:06.000Z",
  "source": {
    "name": "ABC News AU",
    "slug": "abc-news-au",
    "url": "https://www.abc.net.au/news/2026-11-11/how-house-unit-values-compare-across-capitals-2026/107337340"
  },
  "original_language": "en",
  "account": "Australia's housing market has undergone a significant transformation since the Reserve Bank increased the cash rate five times in 2026, raising borrowing costs. While property values have faced pressure across most capital cities, unit prices have generally declined at a smaller rate than detached houses. This shift marks a reversal from November last year when houses led price growth. As affordability constraints persist, more Australians are opting for apartments over houses, helping apartment values hold up better than houses during this downturn. House values have fallen 5.9 percent since the end of January, while unit values have declined by 3.6 percent. The national median house value stands at about $1.1 million, compared to $739,000 for units, a $361,000 gap that directly impacts demand as borrowing capacity decreases. Canstar estimates that a person on an average full-time wage of $108,650 would see their borrowing capacity reduced by over $58,000 following the latest rate rise. Cotality research director Tim Lawless noted that more affordable segments of the market have generally held up better as serviceability pressures intensified. PRD chief economist Diaswati Mardiasmo highlighted that units are typically 25 to 35 percent cheaper than houses, making them an increasingly attractive option for first-time buyers. Many house buyers have shifted their budget towards units, propping up that part of the market with less debt and smaller mortgage payments becoming more manageable in the face of rising interest rates. For India, a 27-year-old first home buyer from Newcastle, the trade-off between houses and units has become increasingly difficult to ignore as interest rates have risen, eroding their borrowing capacity by $25,000 to $50,000. Another concern for India and her partner is the added cost of strata living in apartments, including maintenance issues and potential expensive repairs in older buildings. Despite these challenges, some housing markets, such as Brisbane, continue to hold up better than others due to lower property prices and limited new house supply. However, houses remain more vulnerable to falling prices over the long term due to their stronger capital growth story driven by land scarcity.",
  "summary": "Unit values outperform houses in most capital cities as rising interest rates shrink borrowing power and reshape demand.",
  "key_points": [
    "House values fell 5.9% since January, while unit values declined 3.6%",
    "Average full-time wage earners see borrowing capacity reduced by $58,000",
    "Units are increasingly attractive for first-time buyers due to affordability"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}