Capital city prices too much for single income Australians

by Phil McCarroll30 Sep 2016
House prices have moved out of reach of average single income Australians in all but two capital cities according to research from an online home loan comparison portal.

Based on 30-year mortgage with today’s average variable rate of 4.74% with a 20% deposit, claims single income Australians could only afford to buy a house in Hobart or Adelaide.

According to, a single income of $59,441 would be able to cover mortgage repayments for a median-priced house in Hobart, while a single income of $72,529 would cover repayments for a median-priced house in Adelaide.

“Our analysis reveals a reality that many young Australians are now living; the impossibility of affording a median-priced house on an average salary in most capital cities,” Peter Arnold, data insights director at, said.

“Those wanting to live in the nation’s capital will require a salary of $97,756 while Sydney’s property boom puts it at the top of the list with a six-figure salary of $137,556 needed to comfortably fund a mortgage on a median-priced house,” Arnold said.

In a Brisbane, somebody looking to buy a median-priced house would require a salary of $80,866, while in Melbourne they would need $96,706.

Arnold said the analysis indicates that capital city markets are likely becoming off-limits for first home buyers even if they are part of a dual-income household.

“Without a partner or family member to share mortgage costs with, the numbers paint a grim picture for millennials, many of which may be squeezed out. Even as part of a couple, east coast property prices are out of reach for many Australians,” he said.

“Many first home buyers, including young families, may find that they have to move away from careers in the CBD and the support of families to more affordable parts of Australia. This could have long term effects on Australian society and bring with it challenges for the future in many areas, including transport and childcare.”