Australians wanting to buy a house in Sydney will now need to be earning $278,000 a year in order to purchase a property in the NSW capital.
The startling figure was revealed following an analysis of PropTrack data by Finder.com.au.
Homebuyers need to earn double the amount of money they did in 2020 just to afford the median-priced home in every capital except for Darwin and Melbourne.
That equals earning $50,000 to $150,000 more a year to even get a foot in the door with the increase linked to interest rate rises and house price hikes.
The data is based on the typical loan rate charged by lenders after a 20 per cent deposit has been placed down on a home.
The median house price in Sydney sits at $1.4million – meaning a household would need to be making around $278,000 a year just to pay off the loan.
That’s an increase of 115 per cent from July 2020.
Australian Bureau of Statistics figures show average wages only increased by 12 per cent in the same period.
Australians wanting to buy a house in Sydney will now need to be earning $278,000 a year in order to purchase a property in the NSW capital (stock image)
To get into the Adelaide property market, homebuyers now need an annual income of around $148,000 – up 131 per cent from 2020.
Brisbane buyers suffered a 128 per cent increase from 2020 figures and now need an income of almost $166,000.
Melbournians must earn an annual income of about $172,000, which is 74 per cent up from 2020.
Finder head of research Graham Cooke was alarmed by the skyrocketing changes.
‘It’s no secret that housing is unaffordable, but these numbers are still surprising,’ Mr Cooke told the Daily Telegraph.
‘Unless they’ve switched careers or had a huge change in circumstances, few people’s income would have risen at a rate that could match this.’
‘In many locations you need to be earning double what you did four years ago.’
‘That is a dramatic change,’ he said.
Homebuyers need to earn double the amount of money they did in 2020 just to afford the median-priced home in every capital except for Darwin and Melbourne (stock image)
He added that unless potential homeowners had a big change in circumstances or switched careers, the income of very few people would have risen in order to match the increased income required.
The huge hike in income required is not as drastic for apartment buyers, with increases ranging from around 50-75 per cent.
