A single buyer on the average income would need to ask the bank of mum and dad for a $900,000 gift to afford the average Sydney house, or $300,000 for a unit, even after securing a loan and saving a standard deposit. CoreLogic and Canstar data shows there were no Sydney suburbs where an average income earner could afford to buy a median house without extra cash to top up their loan. CoreLogic head of Australian research Eliza Owen said there’s a significant gap between income, savings and purchase prices.
“Sydney’s house market ranges from literally no house market being affordable for low-income singles, but even for high-income, dual-income households, only 54 per cent of markets are accessible,” she said. Owen said buyers will leave Sydney in favour of regional NSW such as the Central Coast, Newcastle, the Hunter Valley, Southern Highlands or Shoalhaven, however, this in itself is not the answer. “That spillover of demand creates a rising tide and affordability challenges for people living in those areas for longer periods of time,” she said.
“There’s this cascading issue of affordability where those in regional centres don’t have an affordable market to go to next.” Owen said the Great Australian Dream of owning a home won’t be accessible for all, with some having to rent forever. For some, apartment living will be the new normal for even high-income Sydney households.
“For a high-income, dual-income household, 94 per cent of unit markets in Sydney.