The last time property was this expensive, Bob Hawke was Prime Minister, MC Hammer was on top of the charts with “U Can’t Touch This” and Peter Sterling was about to win his second Rothmans Medal.

That was September 1990 – when the average Aussie needed to shell out 45.5 per cent of their income to buy a house.Today, that same figure is 45.4 per cent.

It's a good way of illustrating just how hard ordinary people are getting hit by the Reserve Bank’s interest rate hike-athon.

And, of course, buyers aren’t the only ones getting smashed by successive rate rises. Families with a mortgage – including thousands who took out loans on Phil Lowe’s promise rates were going nowhere until 2024 – are under the pump. And they’re under the pump in a big way.

According to Finder, more than four hundred thousand households missed a mortgage payment in the second half of last year.

It's no secret mortgage stress is a massive problem in Kiama.

A couple of months ago, the Illawarra Mercury interviewed a local family forced to sell their car to help keep up with mortgage payments, which had gone up by $1300 a month.

That’s $15,000 a year extra for a family already paying lots more for electricity, petrol, and groceries. Given the 2021 Census found Kiama’s average monthly mortgage payment was $2194, it’s safe to assume locals are now on the hook for at least $3000 a month.

How are families supposed to get ahead and plan for the future when it costs that much just to keep a roof over their heads?

Speaking to Kiama business owners this week, it’s clear these rate hikes are rippling through the local economy – people are spending noticeably less.

A local hair studio owner in Kiama, says her turnover is down and her cash flow has taken a hit.

“Customers have been rescheduling their appointments because they simply can’t afford it. It’s hard,” she said.

A similar story for Darren Longbottom, owner of Zink Surf, who says he’s been forced to cut costs and is looking hard at layoffs.

“A business is no different to a personal or family budget. Along with obvious slowing trade, we have a cost to business which is increasing with not only inflation but with what seems like endless rising interest rates,” he said.

It's not just mortgage holders up against it, though - renters are in a similar boat.

When the Census was published two years ago, the average weekly rent in the Kiama LGA was $485.

Today, of the 74 available rentals in Kiama and surrounding suburbs on realestate.com.au, only 7 are on the market for $485 or less and there’s nothing with two bedrooms for less than $600.

Last week, The Bugle promised to start a new conversation about the future of our community.

We’re speaking up about interest rates and the cost of living today because our community literally doesn’t have a future if solutions aren’t found to make property more affordable.

That’s why, in the coming months, every time we speak to an elected official – be it the Mayor, an MP, or a Minister – this will be our first question. And it should be yours too.