Housing Severely Unaffordable in Australia as Sydney & Melbourne Are Ranked Top Five Unaffordable-Demographia

Sydney, February 10, 2016 (Newswire.com) - According to a recent survey by Demographia, owning a home in Australia has been categorized as severely unaffordable compared with other metropolitan markets around the world.

Out of the 10 major metropolitan markets assessed in the survey, Sydney was ranked the second least affordable with Melbourne tying at the fourth position.

“For more than 100 years the average Australian family was able to buy its first home on one wage. The Median house price was around three times the median income allowing young home buyers easy entry into the housing market the median house price has increased, in real terms, by more than 300% - from an average index of 100 between 1900 and 2000 to an index over 300 by the year 2008. Relative to incomes, house prices has increased from three time’s median income to more than nine times income.” Wrote Senator Bob Day in his report

A typical Sydney house costs more than $1 million which translates to households spending up to 12.2 times their annual income which is 2.4 times more than they previously did. Melbourne comes in at 9.7 times the median annual household income. Despite being ranked among the most expensive cities, properties in Sydney and Melbourne are still moving at a fast pace because of the low interest rates on home loans.

Press Release by The Finance Site

The Finance Site is a new digital initiative backed by QuickSelect to assist Australians home buyers and refinancers make savvy financial decisions by understanding the home loan market. The Finance Site provides consumers with access to an online home loan comparison service that caters for people with busy lifestyles and those seeking help from a service that is efficient, convenient and focused on delivering outstanding customer service.

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