Dream home dilemma: Aussies struggle as housing costs soar according to latest data
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The Australian dream of owning a home is becoming increasingly elusive, especially for those on a single income.
A recent analysis by Finder, using CoreLogic's latest property data, paints a stark picture of the financial reality facing prospective homeowners across the nation.
The average house price in Australia now stands at a staggering $867,188, requiring a minimum household income of $171,223 per year to make the dream of homeownership a reality.
For those looking to purchase an average unit, priced at $610,789, the required household income is somewhat lower but still a hefty $120,598 annually.
This situation is particularly challenging given that the average full-time worker in Australia earns $98,218 per year, according to the Australian Bureau of Statistics (ABS).
This gap between earnings and the cost of housing means that for many Australians, the goal of owning a home remains just that—a goal, rather than an achievable milestone.
In Sydney, the situation is even more daunting. To afford an average home in this city, with prices around $1.3 million, a household would need to earn a minimum of $263,195 per year.
Even opting for a unit that costs an average of $755,000 requires a substantial income of $149,072 annually.
Canberra follows Sydney as the next most expensive capital city for homebuyers, where a minimum average income of $185,599 is needed.
On the flip side, Darwin offers a glimmer of hope as the most affordable capital city to buy a house in the top end, with an average price of $390,000 and a minimum required household income of $77,004.
Graham Cooke, Finder's Head of Consumer Research, expressed concern for first-time buyers who are finding it increasingly difficult to enter the housing market.
‘Many Australians dream of owning their own home, but it’s becoming increasingly difficult to get your foot in the door,’ he said.
‘Those living in major capital cities now require a substantial household income just to be able to comfortably service the average mortgage, without even considering saving for a deposit.’
The financial strain on homeowners is evident, with the Reserve Bank of Australia holding interest rates at 4.35 per cent on Tuesday, the highest level since November.
Cooke suggested that those waiting for a rate cut may be disappointed.
‘Homeowners are doing it tough and are looking for any reprieve they can get,’ he said.
‘Finder’s (research) shows households are nearing the top of their financial limit. Over a third of homeowners said they struggled to pay their mortgage in April, while for renters the number was even higher at 42 per cent.’
As discussions about the minimum household income needed to buy a home in Australia continue, a report has unveiled ‘disturbing’ figures highlighting the wealth divide among Australian households.
This data sheds light on the challenges faced by many Australians, especially seniors, in achieving financial security and homeownership.
It is important to explore how these two issues intersect and the broader implications for the nation's economic landscape.
Have you found ways to overcome these financial hurdles, or are you reconsidering your plans for homeownership? Share your stories and insights in the comments below.
A recent analysis by Finder, using CoreLogic's latest property data, paints a stark picture of the financial reality facing prospective homeowners across the nation.
The average house price in Australia now stands at a staggering $867,188, requiring a minimum household income of $171,223 per year to make the dream of homeownership a reality.
For those looking to purchase an average unit, priced at $610,789, the required household income is somewhat lower but still a hefty $120,598 annually.
This situation is particularly challenging given that the average full-time worker in Australia earns $98,218 per year, according to the Australian Bureau of Statistics (ABS).
This gap between earnings and the cost of housing means that for many Australians, the goal of owning a home remains just that—a goal, rather than an achievable milestone.
Owning a home on a single income in Australia is challenging, with a minimum household income of $171,223 needed to buy an average-priced house. Credits: Shutterstock
In Sydney, the situation is even more daunting. To afford an average home in this city, with prices around $1.3 million, a household would need to earn a minimum of $263,195 per year.
Even opting for a unit that costs an average of $755,000 requires a substantial income of $149,072 annually.
Canberra follows Sydney as the next most expensive capital city for homebuyers, where a minimum average income of $185,599 is needed.
On the flip side, Darwin offers a glimmer of hope as the most affordable capital city to buy a house in the top end, with an average price of $390,000 and a minimum required household income of $77,004.
Graham Cooke, Finder's Head of Consumer Research, expressed concern for first-time buyers who are finding it increasingly difficult to enter the housing market.
‘Many Australians dream of owning their own home, but it’s becoming increasingly difficult to get your foot in the door,’ he said.
‘Those living in major capital cities now require a substantial household income just to be able to comfortably service the average mortgage, without even considering saving for a deposit.’
The financial strain on homeowners is evident, with the Reserve Bank of Australia holding interest rates at 4.35 per cent on Tuesday, the highest level since November.
Cooke suggested that those waiting for a rate cut may be disappointed.
‘Homeowners are doing it tough and are looking for any reprieve they can get,’ he said.
‘Finder’s (research) shows households are nearing the top of their financial limit. Over a third of homeowners said they struggled to pay their mortgage in April, while for renters the number was even higher at 42 per cent.’
As discussions about the minimum household income needed to buy a home in Australia continue, a report has unveiled ‘disturbing’ figures highlighting the wealth divide among Australian households.
This data sheds light on the challenges faced by many Australians, especially seniors, in achieving financial security and homeownership.
It is important to explore how these two issues intersect and the broader implications for the nation's economic landscape.
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