The Sydney Morning Herald reported that rising house prices have made the "Australian dream" out of reach, and it is already difficult for people to buy a single-family house or apartment in Sydney on their personal income alone.
Canstar's latest modelling shows that Sydneysiders need to earn six figures to afford local property.
Based on Domain's Q2 house price data, a couple in Sydney's Eastern suburbs would need more than $600,000 in income to afford a local property. In North Sydney and Hornsby, a couple would need to earn $476,000 a year to afford the mortgage they would have to pay to buy a home there.
Income needed to buy a single-family house across Sydney (Image: The Sydney Morning Herald)
If a couple wants to buy a home in Northern Beaches, they need to earn $412,000 to afford the local median home price of $2.57 million. The latest data from the Australian Bureau of Statistics also shows that for single people, it takes an annual income of 100,000 Australian dollars to afford a property in southwest Sydney.
Income from buying an apartment across Sydney (Image: The Sydney Morning Herald)
Sally Tindall, director of data at Canstar, said that for the general public, the numbers are astronomical.
"Those who don't own a property can only watch the Australian dream get farther and farther away from them. Most people want to move into the East End and can only sell one apartment. ”
Tindall also said that in order to realize the Australian dream of "every inch of land", more and more home buyers can only improve their borrowing ability, including moving to other states to live, or asking for a salary increase.
(Image source: The Sydney Morning Herald)
Lawrence Uren, a senior lecturer in economics at the University of Melbourne, said some Australians had been excluded from the property market.
"A lot of people have been forced to postpone their home buying plans or save money in other ways. For some, they may be able to afford an apartment or townhouse, but they can't afford a single-family home with a backyard. ”