Housing affordability worsens further

A major housing group blames sluggish wage growth as one factor for worsening housing affordability as house prices continue to climb.

The Housing Industry Association's latest affordability report shows a worsening situation - by 7.3 per cent during the December quarter - with the biggest deterioration in Melbourne (-11.6 per cent), Canberra (-10.7 per cent) and Sydney (-7.3 per cent).

"Nationally, housing affordability has managed to move in the wrong direction in many major cities despite the fact that interest rates are at a very low levels,' HIA senior economist Shane Garrett said on Tuesday.