Invest
Property rise makes housing ‘severely unaffordable’
The recovered property market is putting further strain on an already unaffordable market, as Australian housing ranks third least affordable country in the world.
Property rise makes housing ‘severely unaffordable’
The recovered property market is putting further strain on an already unaffordable market, as Australian housing ranks third least affordable country in the world.

According to global housing affordability advocacy group Demographia’s latest annual research, despite the largest correction in Sydney’s price reduction in 35 years, house prices relative to incomes have doubled since the 1980s.
Demographia assesses housing affordability in major markets across the world through the use of a “median multiple”, which divides the median house price by the median household income.
The research found that all five of Australia’s major markets (Sydney, Melbourne, Brisbane, Adelaide and Perth) were listed as “severely unaffordable”, recording a median multiple of 5 or above – meaning the median house price was over five times the median household income.
On average, Australia’s major housing markets posted a median multiple of 6.9 – the third highest (among eight national housing markets) in the world, behind only Hong Kong and New Zealand.

The research showed that Sydney is the third least affordable city in the world, with only Hong Kong and Vancouver being less affordable.
Melbourne came in fourth for least affordable, being a greater multiple than Los Angeles, Toronto and Auckland.
The group noted that in Sydney and Melbourne, median income households need at least three years more of income to pay for the median-priced house than in 2004 when the first Demographia Survey was published.
Of the areas studied, only Gladstone in Queensland, with a median multiple of 2.8, was considered affordable.
The report also found that the high cost of property will lead to an increase in government-required subsidised housing.
The Australian Housing and Urban Research Institute estimated the “current housing need in Australia to be 1.3 million households” and expected the need to worsen.
A parliamentary briefing book found that “the stock of social housing is not increasing at a rate sufficient to keep up with demand, and waiting lists for social housing remain long,” the report concluded.
About the author

About the author


Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more