A new analysis by comparison website RateCity.com.au showed that six out of eight Australian capital cities have a median price that is unaffordable on an average single income.
Only Hobart and Adelaide
were deemed affordable to singles having an average salary of $59,441 and $72,529 respectively. Meanwhile, those who want to buy a house in Brisbane and Melbourne would need to have an average salary of $80,866 and $96,706 respectively to be able to afford repayments on a 30-year mortgage.
“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,” said Peter Arnold, data insights director at RateCity.com.au.
“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 added that millennials would need the help of a partner or a family member to afford mortgage costs. But even couples are having a hard time landing a property on the east coast.
“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,” said Arnold.
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