New Australian property data reveals how much you need to earn to buy a home compared to 1975
New figures have revealed how much of your income you would need to buy a home in Australia, and it has shot up dramatically over the last five decades. While older Australians might tell you they had to dig deep to get the keys to their castle, the Australian Property Institute’s (API) data reveals it's never been harder than right now to get on the property ladder.
Nationally, you would need 8.1 times the average annual income (which is $102,742) to afford an average home. Back in 1975, you only needed 3.4 times the average salary.
“Looking at the data, housing affordability is now at a 50-year low, driven by incomes failing to grow above inflation and a corresponding shortage of new homes being built,” API CEO Amelia Hodge said.
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How much income do I need to buy a home in each state?
Unsurprisingly, Sydney topped the list for how much money you'd need if you wanted to jump onto the property ladder.
According to the Australian Property Institute Valuation Report, you'd need 13 times the average salary to buy a home in the harbour city.
What's wild is that 50 years ago, you only needed 4.2 times the average salary to get a slice of the Australian dream.
Do you have a property story? Email stew.perrie@yahooinc.com
In just 20 years, the price of the average Sydney home has shot up 171 per cent, and it's a similar story right across the country.
Melbourne's salary-to-home value ratio went from 3.5 in 1975 to 8.4 in 2024.
Brisbane went from 2.9 to just above the national average at 8.3.
The other capitals have experienced rapid growth in just the last two decades, with Canberra's average home price shooting up 148 per cent, Hobart's is up 172 per cent, Perth's is up 123 per cent, Adelaide's is up 175 per cent, and Darwin's is up 102 per cent.
This widening income-to-home price ratio has been driven both by hot demand in the property market as well as stagnating wages due to low productivity and economic growth.
According to Ray White, Aussie house prices jumped by $46,625 from $871,671 to $918,296 in the 12 months to April 2025.
Conversely, the wage price index in March 2024 was 4 per cent. Fast-forward to the March quarter this year and it's fallen to 3.4 per cent.
Understandably, many have all but given up hope of owning their own home. A poll of more than 2,600 Yahoo Finance readers found 63 per cent feel property ownership will never be within reach for them.