Tough times are back for Australia’s homebuyers.

A new study shows that affordability plunged by 18.4 per cent in the final three months of last year.

That took it to a level 22.3 per cent lower than that seen 12 months earlier.

This means that affordability is now moving back to the levels last seen in 2008.

But interest rates were much higher then than they are now.

The Housing Industry Association, which conducted the study, blames rising house prices, three interest rate rises and rapid population growth and the winding down of the Federal government’s assistance to first home buyers.

It said home buyers in Sydney, Brisbane, Hobart and Canberra had been hit hardest.

The HIA’s senior economist, Ben Phillips, said the brief opportunity that first home buyers recently had, to get into the market, is now closing.

“Australia’s fast growing population is pushing dwelling requirements to record high levels,” Mr Phillips said.

The association expects that there will be 151,000 new home starts Australia this year.

However Mr Phillips said that would be well short of the 190,000 needed to meet expected population growth.