Findings from CoreLogic has reaffirmed what property investors already know – that Sydney, Melbourne and Hobart have grown faster than household wages, making it harder for investors out of the market to catch up. 

However, national dwelling values have risen at roughly the same pace as household incomes over the past decade, providing a relatively steady ratio of dwelling values relative to household incomes.

The latest CoreLogic Property Pulse issue released last week showed that nationally, the ratio of dwelling values to household incomes has fluctuated over the past decade, moving through a low of 6.1 in late 2012 to a recent high of 7 in early 2018. In June 2019, the ratio was recorded at 6.5, which is equivalent to where it was in 2009.

A ratio of 6.5 means the typical Australian household is spending 6.5 times their gross annual household income in order to buy a typical dwelling.

Despite most of Australia’s ratio of income to expenses remaining steady, the typical Sydney household is now spending 8.2 times their gross annual household income to buy property, which is up from 6.6 per cent 10 years ago.

Melbourne has increased to 7.2 times their annual income, up from 6.4 times, and Hobart households are now spending 6.5 times income, up from 5.9 times a decade ago.

CoreLogic’s head of research, Tim Lawless, said: “The wash-up from these movements is that housing affordability, based on the ratio of dwelling values to household incomes, is broadly unchanged across Australia, and households are generally dedicating less of their income towards servicing a new mortgage.”

The research also pointed to a similar story with mortgage serviceability, as the cost of credit continues to fall. 

Despite mortgage rates falling to their lowest level since at least the 1950s, households in Sydney, Melbourne and Hobart are generally allocating a larger portion of their income towards servicing a new mortgage than they were in 2009.

Based on the proportion of household income required to service a new 80 per cent loan-to-value ratio, Sydney households are dedicating 43.7 per cent of their gross annual household income on mortgage repayments compared with 37.7 per cent 10 years ago. When mortgage rates were around 9 per cent in early 2009, Sydney households were dedicating a much larger 54.2 per cent to service a mortgage.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

Property

Zagga's ninth anniversary sees focus on investor education in real estate private credit

In a significant milestone, Zagga, a key player in the Australian real estate sector, is celebrating its ninth anniversary with a renewed commitment to investor education. The company has grown ...Read more

Property

Australian property’s quiet pivot: resilience hides a new competitive map

Australia’s housing market remains sturdier than the macro noise suggests, but the sources of resilience have shifted. For operators, the profit pool is migrating from ‘volume at any price’ to ...Read more

Property

Gen Z’s 5% deposit rush: how policy‑driven demand is reshaping Australia’s housing value chain

A government-backed 5% deposit guarantee has triggered a surge in first-home buyer intent among Gen Z, pulling forward demand and resetting competition across banks, brokers and buildersRead more

Property

Cautious bidders, smarter sellers: a Queensland auction case study on repricing risk

Queensland’s auction market has hit a caution cycle as buyers price in higher borrowing costs, global uncertainty and cost-of-living pressure. Clearance softness is forcing agencies to re-engineer ...Read more

Property

Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance

NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more

Property

Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances

After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more

Property

Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it

Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more

Property

The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite

The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more