Sydney households need an annual income of about $232,000 to afford a median house, according to new lending and price analysis from Canstar, with data across Australia pointing to a widening gap between earnings and property costs.
The estimates, drawn from Canstar calculations based on CoreLogic values, show a typical Sydney house priced at about $1.59 million requires a 20 per cent deposit of $319,764 and a loan of $1.27 million. Monthly repayments are estimated at $7,464, implying an individual income requirement of $232,000 or about $121,000 each for a couple.
Data across other capitals shows the pressure is not confined to Sydney. Melbourne’s median house value of about $989,356 requires an income of $145,000, while Brisbane sits higher at $166,000 on a median value of $1.15 million. Adelaide and Perth are close behind, each requiring more than $140,000. Even in smaller markets, such as Hobart and Darwin, required incomes remain above $110,000.
Unit markets present a lower entry point but still demand earnings above typical wages in most cities. In Sydney, a median unit price of $903,210 requires about $134,000 in individual income. Melbourne’s unit market requires around $102,000, while Brisbane stands at $124,000. Across all capitals, the figures remain above or close to the reported national average income of $114,426.
The affordability constraint is reflected in suburb-level data. Only one in five suburbs nationwide are considered affordable for households earning the average income, according to Cotality data. That proportion is lower in Sydney and Melbourne, where price growth over recent years has outpaced wage gains.
Supply conditions continue to weigh on the outlook. Fresh figures from the Australian Bureau of Statistics show dwelling approvals fell 10.5 per cent in March to 17,300. The decline was led by a 26.0 per cent drop in private sector dwellings excluding houses, following a sharp rise in February. At the same time, private sector house approvals rose 0.9 per cent to their highest level since November 2021.
The value of residential building also fell, dropping 15.8 per cent to $10.77 billion, while non-residential building declined 25.3 per cent to $5.97 billion. The data points to uneven supply momentum, particularly in higher-density housing, which plays a central role in easing pressure in major cities.
The combined figures show a housing market where borrowing capacity is being stretched, especially in Sydney, and where recent movements in approvals have yet to translate into broader relief for buyers.
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