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.
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.