How much you need to earn to buy a home across Australia

Only two of Australia’s eight capital cities have a median house price that can be afforded by an average single income, new analysis by financial comparison website, RateCity.com.au, shows. 

Hobart and Adelaide remain the last affordable capital cities for the nation’s singles with a salary of $59,441 and $72,529 needed respectively to afford repayments on a 30-year mortgage (with a deposit of 20 per cent at today’s average variable rate of 4.74 percent).

“Our analysis reveals a reality that many young Australians are now living; the impossibility of affording a median-priced house on an average salary in most capital cities,” said Peter Arnold, data insights director at RateCity.com.au. 

“Those wanting to live in the nation’s capital will require a salary of $97,756 while Sydney’s property boom puts it at the top of the list with a six-figure salary of $137,556 needed to comfortably fund a mortgage on a median-priced house.

“Without a partner or family member to share mortgage costs with, the numbers paint a grim picture for millennials, many of which may be squeezed out. Even as part of a couple, east coast property prices are out of reach for many Australians,” he said.

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In Sydney the median price for a home is $825,000. This means that an average home buyer would have to to have an annual income of $137,556 in order to be able to purchase a home.

 

One example would be the three bedroom home at 68 August At Punchbowl (below) that recently sold for $821,000.

 

 

Melbourne's median price for a home is $580,000. An average home buyer would therefore need to earn $96,706 per year in order to be able to afford one.

 

An example would be the two bedroom home at 8 South Crescent Heidelberg West (below) that is for sale for between $550,000 to $590,000

 

 

An average Brisbane home buyer would need to earn at least $80,866 in order to purchase a home with a median price of $435,000.

 

A four bedroom home at 101 Macquarie St (below) that was recently sold for $436,000 would be an example of an average home in Brisbane.

 

 

In Adelaide with a median price of $435,000 a home buyer would need to have an income of $72,529 if they want to purchase a home around that median price.

 

One example would be the two bedroom home at 30 Kate Court (below) that was sold for $415,000.

 

 

With the median price of a home at Perth at $520,000. An annual income of $86,866 would be required to buy a home.

 

An example would be a two bedroom home that was recently sold at 14 Church Street (below) for $550,000.

 

 

An annual income of $59,441 would be required to purchase a home in Hobart with a median price of $356,500.

 

One example would be a three bedroom home that was recently sold for $365,000 at 143 Davey Street (below).

 

 

With a median price of $570,000 the average home owner in Darwin would need to have an annual income of $95,039 to purchase a home.

 

An example would be three bedroom home at 6 Savage Close (below) that was sold for $579,000.

 

 

Canberra has a median home price of $586,300, an average home owner would need to have an annual income of $97,756.

 

An example would be a four bedroom home at 2 Breden Place (below) that is for sale for between $620,000 to $640,000.

 

 

 

 

In NSW the average median home price is $408,600 meaning an average home buyer would need an income of $68,128 per year to purchase a home.

 

One example would be at 19 Kendall Street, Bellbird (below) that is for sale for between $425,000 to $439,000.

 

 

One example would be at 61 Tequesta Drive, Beaudesert (below) that is for sale for $445,000.