Housing affordability has gotten better in the last two years – but in cities like Sydney and Melbourne, owning a house doesn’t come cheap.
While we’re due to see a flood of newcomers to the property market, the first step to owning a home – saving for a deposit – is still out of reach for some.
New research from ANZ-CoreLogic’s latest Housing Affordability Report has revealed that, naturally, the time it takes for you to save for a house deposit will depend on where you live.
Unsurprisingly, Sydneysiders will take the longest to save up for a deposit.
On average, it would take someone living in Sydney 11 years to save up a 20 per cent deposit if they regularly set aside 15 per cent of their household income for it.
Melbourne is not much better, with residents needing 9.6 years to build a deposit, while an Aussie living in regional NSW would take 9.3 years to save for a 20 per cent deposit if they saved 15 per cent of their income.
Hobart has also become more unaffordable, taking 8.6 years to save for a deposit, and Adelaideans would take 8.2 years.
Brisbanites would have to save for 7.7 years in order to afford a 20 per cent deposit, and those living in Perth would take 6.9 years to amass a deposit.
Canberrans would be saving for 6.7 years, while those living in Darwin have it best – it would take them just 4.5 years to save for a 20 per cent deposit.
If all of this sounds like a lot of time to you, the figures have actually improved from levels seen a year ago and a decade ago.
“Regional households saving 15 per cent of their income will typically need to save for 7.7 years in order to accrue a 20 per cent deposit; a slight improvement from one year ago (7.8 years) and down from the recent peak of 9.0 years in 2008,” the report said.
“To save for a house deposit it currently takes 7.9 years which is slightly shorter than a year ago (8 years) but well down from the recent peak of 9.2 years in early 2008.”
If you wanted to save for a deposit for a unit instead, it takes less long – but only just, at 6.9 years (down from 7.1 years 12 months ago).
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