Australia's Worst Suburbs for Mortgage Arrears and Where Home Prices Are Falling With No Buyers

Conor's Corner

"Over the last 6 months, we have witnessed an alarming rise in mortgage stress and associated financial hardship cases. At MyMoneyMedic, we’re witnessing the impacts first hand, as real Australian families try to navigate these challenges. Financial stress levels are elevated as classic symptoms of over leveraging kick in. This is having a detrimental impact on the overall health of real Australians."

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Australia's housing market has faced significant turbulence over the past year, with rising interest rates and cost-of-living pressures pushing homeowners to the brink. While some areas have shown resilience, others are grappling with mounting mortgage arrears and stagnant property demand.

The Suburbs Struggling with Mortgage Arrears

According to recent data, mortgage delinquency rates have surged in specific regions, primarily in outer suburban areas where homeowners often carry higher debt burdens. Areas with lower household incomes and higher levels of financial stress have been hit the hardest.

Some of the suburbs with the highest mortgage arrears include:

• Western Sydney, NSW: Suburbs like Mount Druitt and Blacktown have recorded a sharp rise in arrears, with homeowners struggling to keep up with repayments.

• Northern Adelaide, SA: Elizabeth and Salisbury are seeing growing financial strain, with limited wage growth failing to match rising mortgage repayments.

• South-East Queensland: Logan and Ipswich continue to report higher delinquency rates, exacerbated by a combination of rapid population growth and increased living costs.

  
  

Why Some Suburbs Face Higher Arrears

Several factors contribute to the surge in mortgage arrears in these regions:

1. Higher Debt-to-Income Ratios: Many homeowners in these areas took on substantial loans during the low-interest-rate period.

2. Job Insecurity: Employment uncertainty, especially in sectors like construction and retail, has left some families struggling to maintain consistent income.

3. Cost of Living Pressures: Rising expenses for essentials such as groceries, fuel, and utilities have further strained household budgets.

   
   

Where Homes Are Getting Cheaper But Struggling to Sell

Interestingly, while prices in some regions remain high, others are witnessing price declines with minimal buyer interest. These areas often face unique challenges, including economic downturns, limited infrastructure development, or declining local industries.

Key regions facing price drops include:

• Regional WA: Towns reliant on mining operations, such as Kalgoorlie and Geraldton, are seeing falling property values as demand dwindles.

• Far North Queensland: Locations like Cairns and Townsville are experiencing slow sales due to a reduced influx of investors and tourism sector instability.

• Outer Melbourne Suburbs: Areas with significant new housing developments are struggling with oversupply, leading to a dip in prices and longer selling times.

  
  

What Can Homeowners Do?

For those facing mortgage stress, early intervention is crucial. Contacting lenders to discuss repayment options or seeking financial counseling can provide a pathway forward. Additionally, exploring government support programs or refinancing at a lower rate may offer temporary relief.

At My Money Medic, we’re committed to supporting Australians through financial challenges. By providing personalized guidance and practical solutions, we help individuals regain control of their finances and build a more secure future.

While the current landscape presents challenges, proactive steps can help homeowners navigate this period of financial uncertainty. Monitoring local market trends and maintaining open communication with lenders are key strategies for staying ahead.

For tailored financial support and stress relief strategies, reach out to My Money Medic – because your financial health matters.