The shocking pay rise you need to afford a home in this Australian city
Sydneysiders hoping to purchase a house in the next year would need a $15,000 pay rise just to keep up with soaring prices, according to new analysis.
Sydneysiders hoping to purchase a house in the next year would need a $15,000 pay rise just to keep up with soaring prices, according to new analysis.
The latest research from Finder, based on recent KPMG market forecasts, show those wanting to buy a median-priced home in Australias biggest city would need a household income of about $282,000 by the end of 2026.
The same home was priced at $268,000 at the start of this year.
Meanwhile, buyers setting their sights on a median-priced unit in Sydney would need to earn about $158,000 by the end of 2026.
Buyers needed about $150,000 at the start of 2025.
Unit prices were forecast to rise by an average of 5 per cent this year, and by 6.1 per cent in 2026.
Interest rate cuts and housing shortages are likely to blame for the increase in prices, KPMG suggested.
Sydneysiders wanting to purchase a median-priced unit will need to earn about $158,000 by the end of 2026 (stock image)
The median home price across Australias major cities is $1.008million (stock image)
Finder.com.au insight manager Graham Cooke said forecast rate cuts would help buyers in 2025.
However, their effect will be mitigated by property price rises, he said.
As long as the increases in prices remain bigger than wage increases property will continue to get more unaffordable, even if buyers get a little bit of rate relief, he told realestate.com.au
The average income required to buy a home is already significantly higher than the average wage.
According to Trading Economics, Australias seasonally adjusted wage price index increased by 3.2 per cent year-over-year in the fourth quarter of 2024.
National house price growth outstripped wages by 1.9 per cent over the same period, according to KPMG.
The average price of a residential home in Australia is $976,800, according to the Australian Bureau of Statistics March 11 release.
That figure equates to more than 13 times the national, median full-time wage.