Singles priced out of property market: RateCity research

Singles priced out of property market: RateCity research
Singles priced out of property market: RateCity research

Singles earning an average income have been priced out of the property market from nearly all of Australia’s capital cities, a new report shows.

An analysis by financial comparison website RateCity.com.au shows that Hobart and Adelaide remain the last affordable capital cities for the nation's singles with a salary of $59,441 and $72,529 needed respectively to afford repayments on a 30-year mortgage (with a deposit of 20% at today's average variable rate of 4.74%). The industry rule that no more than 30 percent of a person’s income should go towards housing costs was applied to arrive at the figures.

The east coast remains the most unaffordable, with Sydney topping the list of tough markets for singles to crack. A person wanting to buy in the harbour city needs a six-figure salary of $137,556 to comfortably fund a mortgage on a median-priced house.

Someone looking to buy in Brisbane or Melbourne would require an $80,866 and $96,706 salary respectively to afford a median priced house, while in Canberra the salary needed would be $97,756.

According to Peter Arnold, data insights director at RateCity.com.au, the report raises further concerns that rising property prices across many cities in the country are forcing Australians out of the market. This could fundamentally impact the nation's demographics and service needs in the years ahead, he said.

“Our analysis reveals a reality that many young Australians are now living; the impossibility of affording a median-priced house on an average salary in most capital cities,” Arnold said.

“Without a partner or family member to share mortgage costs with, the numbers paint a grim picture for millennials, many of which may be squeezed out. Even as part of a couple, east coast property prices are out of reach for many Australians.”

“Many first home buyers, including young families, may find that they have to move away from careers in the CBD and the support of families to more affordable parts of Australia. This could have long-term effects on Australian society and bring with it challenges for the future in many areas, including transport and childcare.”

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First Home Buyers Demographics

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