Ever-increasing house prices are driving people out of Sydney and Melbourne, new research shows, as the size of the average mortgage hits another high.
Surging house prices in Sydney and Melbourne over the past decade have left millions of workers worse off despite enjoying better wages, contributing to the flight of key employees from both cities, ground-breaking analysis has revealed.
Compared to those in regional areas, city-based workers enjoy what e61 describes as an “urban wage premium” worth about $8000 annually. Industrial workers, such as truck drivers and labourers, have been the worst hit. Their average wages were already $1000 a year lower than their regional counterparts, but after the surge in house prices, they are now $10,000 worse off every year.These people earn on average $2620 more in capital cities but after housing costs are taken into account, they are $8250 worse off every year.
From 2012 to 2022, Sydney’s median house value rose by 110 per cent, but wages grew by just 25 per cent. In Melbourne, house prices grew by 95 per cent and wages by 27 per cent. Regional centres such as Geelong and Wollongong are attracting residents priced out of Sydney and Melbourne.Those who remain are heading to cheaper housing on the urban fringe, a move that comes with its own cost. The proportion of people taking long commutes to work, measured at more than two hours in a return trip, has climbed faster in Sydney and Melbourne than in other capitals.
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