If purchasing a house in Australia is a bit challenging decision to make, the Federal Government has released its research data revealing places that are likely to have affordable houses for sale.

The Council of Australian Governments has commissioned a series of reports to benchmark progress on the country's performance on housing affordability, health care, Indigenous issues and disability services.

Victoria is noted to be the best performing state with affordable houses according to the new Federal Government research. Victoria has only over 40 per cent or nearly half of the homes that were considered affordable for low and middle-income earners.

The research noted that Queensland and Western Australia, however, are the least affordable states to buy a house based on income level. Prices were determined to be above the income generated by the lower-income groups.

Western Australia, the country's largest state, only had less than 10 per cent of homes and properties that were within the means of low and middle-income buyers. The state's economy is also capital-intensive which may affect the cost of living among the population. Most industrialized companies surround the state employ hundreds of workers.

In Queensland, the figure is at 17 per cent which was noted to be better performing than Western Australia.

Other than the survey of affordable homes, the research also reported significant problems on the country's indigenous housing.

Figures showed that almost 26,000 or about 13 per cent of indigenous households are considered overcrowded. Remote areas especially have the worst cases of overcrowding.