Half of the properties in Melbourne are only affordable to the highest-earning 20 per cent of first home buyers houseprices
That’s based on analysis by the National Housing Finance and Investment Corporation, which looked at both first-home purchase and rental affordability around Australia. It differs from other housing analysis because it looks at affordability by income segment rather than assuming an average or median income.
However, the only Australian capital cities that came close to this were Perth and Adelaide, while regional Western Australia and South Australia had a wide range of property available for most income groups. Hobart and regional Tasmania were among the least affordable markets in Australia relative to local incomes.
Nick Langley, 32, recently bought a two-bedroom flat, in an older-style block of six in Summer Hill in Sydney’s inner west, for between $650,000 and $700,000. “There is absolutely no way that somebody on my comfortable income could afford that without help,” Mr Langley said. “The reality is that my mortgage payment is not that much more than my rent was, but getting a deposit together of $100,000 is pretty unrealistic for most people in their 20s or 30s while they’re paying $300 or $400 a week in rent.”The NHFIC analysis found both Sydney and Melbourne were slightly more affordable for renters than a year ago but still very expensive.
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