The latest HIA-CBA Housing Affordability Report shows that housing affordability fell markedly in the majority of capital cities and regional areas in the 3 months to June 2010.

The HIA-CBA housing affordability index fell 9.1% in the June 2010 quarter to be 32% lower when compared to the same time last year.

Housing affordability was down 9.5% in the major capital cities and 6.7% in regional Australia.

Predictably Sydney recorded the largest fall at 9.1% followed by regional Victoria at 9% then regional Tasmania at 8.8% and Adelaide 8.7%.

The index combines household incomes, home prices and interest rates to determine relative affordability.