Australian house prices are abhorrent.
We know they’re expensive. We also know that in Australia they’re a little too expensive – especially for first home buyers.
On January 1st this year the average wage, according to the Australian Bureau of Statistics, was $58,692.40 before tax. That means – according to Which Real Estate Agent – the average Australian can’t afford to buy a house in most Australian cities.
Which Real Estate crunched the numbers for us. They have determined the annual salary you would need to be earning in order to purchase an average priced house in Australia’s capital cities.
Australia wide, homebuyer needs to be on an average annual salary of $73,500 to buy a median-priced home in Australia.
“The national median house price does not accurately reflect how much it costs to buy in some of Australia’s most in-demand locations.”
Obviously, there are lots of variables to consider, and Which Real Estate They made their calculations assuming that a homebuyer was of a certain and very specific demographic, which you can read on their site.
Here is what they discovered were Australia’s most affordable cities:
Hobart was the most affordable. You need an annual wage of $49,000 to buy a home there.
Adelaide requires an annual salary of $57,100.
In Brisbane you need a salary of $62,900.
Perth is more expensive, requiring an annual wage of $66,500.
Darwin requires an annual salary of $72,500… and a love for humidity.
Canberra is more expensive, again. You need to be earning $73,300 to buy a home here.
In Melbourne your wage needs to be $75,400.
And finally, if you live in Sydney you need to be earning six figures to be buying a home. You need to be on an annual salary of $106,000. The median house price in Sydney is $900,000.
You get the gist; homes in Australia are very expensive and don’t line up with our national wages.
Do you own a home? How did you save for it? If not, are you planning to?