Invest
East coast bias for housing affordability
Excluding Australia’s south-east, housing affordability relative to income has improved over the past 10 years, according to a property research group.
East coast bias for housing affordability
Excluding Australia’s south-east, housing affordability relative to income has improved over the past 10 years, according to a property research group.
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.
RELATED ARTICLES
About the author
About the author
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
