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Home › Buying › Map: The Salary You Need to Buy In Each Australian City
If you ever doubted how extreme Australia’s housing affordability problem is, this will show you exactly how far it’s gone.
We’ve recalculated the annual salary a single person (with no dependents) would need today to buy the median-priced home in each of Australia’s capital cities (and selected inner suburbs). The numbers are eye-opening.
Key Takeaways Affordability is far worse in 2025 what once looked extreme now looks normal in Sydney & Melbourne. Median prices have surged, Sydney’s median home is over AUD 1.24 million. Required salaries now often exceed $150,000–$200,000+ for median homes in capital cities. Buyer qualification is the actual limit, not just desire. Many buyers simply can’t get finance. Sellers must adapt, smarter pricing, marketing to niche buyers, and offering financing flexibility may be key.
Key Takeaways
If you’re trying to buy or sell a home in Australia, understanding how salary and property prices are linked is crucial. It affects everything from how much buyers can afford, to how quickly homes sell, and even what price sellers can realistically expect.
When people talk about housing affordability, they’re really talking about how much income you need to comfortably afford a typical home. If the amount of money needed to buy that home grows faster than wages, fewer people can qualify for loans even if they’re good earners.
This means that as prices rise and wages don’t keep up, many buyers are priced out of the market. The pool of active buyers gets smaller. For sellers, this can lead to slower sales or the need to adjust expectations.
The median house price is the “middle” price of all homes sold in a given area, half sold for less, half for more. It’s a useful benchmark, but it doesn’t reflect the huge differences between suburbs.
For example, Sydney’s median price might be $1.24 million, but in outer suburbs like Campbelltown or Blacktown, houses might still sell for under $900,000. Meanwhile, in Bondi or Mosman, prices can soar well above $3 million. So while the national or city-wide median helps give a general idea, your local suburb market could look very different, especially when it comes to what income buyers need.
Lenders use a borrower’s income to decide how much they can borrow. If buyers don’t earn enough to cover repayments especially with current high interest rates, they won’t be approved for a loan, no matter how much they want your property.
This is why the “salary needed” calculation is so important. It gives a snapshot of who can actually afford to buy.
For example:
So for sellers, understanding affordability helps you set realistic expectations and price your property where real buyers exist.
Over the past decade, house prices have grown much faster than average wages. According to the Australian Bureau of Statistics (ABS), average full-time earnings sit around $95,500 per year, while the median house price in Australia is now over $900,000.
That’s nearly 10 times the average annual income, when most experts consider a ratio of 3 to 5 times income to be “affordable.” This widening gap explains why younger Australians and first-home buyers are struggling more than ever.
If you’re a homeowner thinking of selling, these numbers help you understand your buyers’ pain points.
Knowing the income range of potential buyers helps your agent create a sharper pricing strategy and better campaigns. It’s not just about what your home is worth, it’s about what buyers can afford right now.
Areas where the salary required aligns closely with what people actually earn tend to have healthier, more active markets. Buyers can still get finance, competition remains strong, and homes sell faster.
In contrast, in suburbs where prices have far outpaced incomes, demand weakens. Even if sellers hold out for higher prices, there just aren’t enough qualified buyers to sustain that level. That’s why affordability data is a clear predictor of where markets are heading.
For buyers, understanding these figures shows whether they’re chasing homes beyond their budget. For sellers, it shows whether they’re targeting the right audience.
If both sides understand the link between salary and affordability, the whole process becomes smoother, from listing to negotiation to settlement.
Below are some updated median house prices (for detached houses) from late 2025, and what income they imply under our assumptions.
The median house price in Sydney alone has surpassed $1.5 million, making it by far the most expensive. Recent studies suggest that many Australians now need close to AUD 200,000 per year to afford a typical home in capital cities under current interest rates and lending rules.
In Brisbane, for instance, a study found that the salary needed had ballooned from ~$72,628 in 2020 to $171,862 in 2025 (for the median house) under certain borrowing assumptions.
Another analysis found that for Sydney, the income required to service the repayments on a median house might be around $292,000 per year under stricter “spend no more than one-third of income on repayments” rules.
So the earlier “$73,500 nationally” benchmark is outdated, the real barrier is much higher now.
Our research suggests homebuyers need an annual salary of $200,000 to buy the median-priced home in Australia.
That’s in line with Australian Bureau of Statistics data that shows the average Australian earns just under $95,500 per year, though this figure is heavily skewed by a small number of high income earners.
While the national median house price and the average Australian annual earnings seem to add up, there’s a problem. The national median house price does not accurately reflect how much it costs to buy in some of Australia’s most in-demand locations.
As you can see from the map below, the annual salary needed to purchase a median-priced home varies from city to city.
The map shows, for example, that the average homebuyer has been all but pushed out of Sydney’s property market. How many individuals do you know who earn more than $106,000 per year?
What the map doesn’t show is that median house prices can also differ greatly between neighbouring suburbs.
Before we dissect the findings in detail, it might be useful to explain how we came up with the numbers.
Our calculations assume that a homebuyer:
We then researched median capital city and suburb house prices using Core Logic and realestate.com.au data, and used an online borrowing calculator to determine how much a buyer would need to borrow to purchase the median-priced home in each location.
This sum was adjusted to reflect the assumptions outlined above.
As of 2025, Australia’s housing affordability has become one of the biggest challenges facing everyday Australians. Whether you’re looking to buy your first home or thinking about selling, understanding which cities are most and least affordable can help you make smarter decisions.
Recent CoreLogic data shows that while some regional and smaller capitals remain within reach for middle-income earners, others particularly Sydney and Melbourne have surged far beyond what most Australians can comfortably afford.
Let’s break it down city by city.
Hobart has consistently held its place as Australia’s most affordable capital. The median house price in Hobart sits around $729,000, which is significantly lower than other capitals. To comfortably afford a typical home here, a single buyer would need to earn roughly $100,000–$110,000 per year under current lending conditions.
This makes Hobart one of the few markets where first home buyers still stand a chance especially when using a smaller deposit or government incentives like the First Home Owner Grant (Tasmania).
For sellers, this affordability means steady buyer activity. Hobart continues to attract mainland Australians seeking lifestyle changes, remote work flexibility, and value for money especially retirees and young professionals.
Adelaide remains another bright spot for affordability and stability. Median house prices hover around $912,000, up about 10% year-on-year. While that’s higher than Hobart, Adelaide’s strong job market, growing infrastructure, and lower cost of living make it attractive to families and investors.
To buy the median-priced home, a buyer would typically need an income of around $120,000–$130,000. That’s high, but not impossible, especially for dual-income households.
For sellers, Adelaide’s balance between affordability and growth means a healthy, active buyer pool. Suburbs like Glenelg, Norwood, and Prospect are performing strongly, driven by buyers upgrading from regional SA or interstate.
Brisbane has long been considered one of Australia’s more affordable big cities but that’s changing fast. As of 2025, the median house price has hit $1.06 million, reflecting strong population growth, interstate migration, and limited housing supply. To buy a median-priced home in Brisbane, a single buyer now needs an annual salary of $170,000–$180,000, up from around $63,000 just a few years ago. That’s a staggering rise in borrowing requirements.
For sellers, this means Brisbane is in a sweet spot: demand remains high, but affordability is tightening. Homes are selling quickly in popular suburbs like Paddington, Carindale, and The Gap, where lifestyle appeal and proximity to the CBD remain strong.
Perth continues to surprise analysts. Long considered undervalued, Perth’s market has strengthened thanks to strong employment, mining investment, and ongoing interstate migration. The median house price in Perth sits around $895,000. A salary of roughly $120,000–$130,000 would be needed for a single buyer to comfortably afford this, far less than what’s needed in Sydney or Melbourne.
Perth also offers better value for money in terms of land size and home quality. Suburbs like Baldivis, Canning Vale, and Joondalup are popular with families and first-time buyers seeking space and affordability.
For sellers, this is great news since demand is strong, days-on-market are shrinking, and competition remains healthy.
Melbourne’s property market has cooled slightly since its 2021–2022 peak, but affordability is still a major issue. The median house price now sits around $953,000. To buy here, a single income earner needs roughly $180,000 per year.
Inner suburbs like Fitzroy, South Yarra, and Carlton remain popular but expensive, often requiring combined household incomes exceeding $250,000.
However, opportunities still exist in Melbourne’s outer ring places like Cranbourne, Werribee, and Melton offer better value and growing infrastructure. These areas are attracting both first-home buyers and investors.
For sellers, Melbourne’s diversity means pricing correctly is key, overpricing in an already tight borrowing environment can push buyers away.
As the nation’s capital, Canberra’s median house price sits just over $1.02 million. That might sound similar to Brisbane or Perth, but the key difference is average local income which is much higher. Public sector workers and professionals typically earn above the national average, meaning affordability hasn’t eroded as quickly. A salary of around $160,000–$170,000 would generally be required to buy at the median.
Canberra remains a seller-friendly market, with low vacancy rates and strong competition among buyers for quality homes in inner suburbs like Kingston and Garran.
Darwin’s market is unique. With a median house price around $667,000, it appears highly affordable, requiring an estimated $100,000–$110,000 salary. But the Darwin market can be volatile. It’s closely tied to resource projects, population shifts, and the local economy. Prices often rise quickly when big infrastructure investments occur and flatten when they end.
For sellers, this means timing your sale is crucial. During growth periods, buyer competition is fierce. When activity slows, days-on-market can stretch out.
No surprise here, Sydney remains Australia’s least affordable city. The median house price now sits at $1.55 million, meaning a single buyer would need to earn around $200,000–$220,000 per year to qualify for a standard home loan with a 20% deposit.
In premium suburbs like Bondi Beach, Mosman, and Point Piper, the numbers are almost surreal, homes can exceed $5 million, and the salary needed can soar into the $500,000–$1 million+ range.
For sellers, Sydney’s market continues to reward quality, presentation, and timing. Demand from dual-income professionals and overseas buyers remains strong, but affordability challenges are narrowing the pool of eligible buyers.
If you’re a first-time seller or buyer, all these numbers, median prices, salaries, interest rates, might feel overwhelming. But understanding how they fit together can make a huge difference in your next move.
Australia’s housing market in 2025 is shaped by affordability pressure. Home values remain high, interest rates are steady, and wage growth hasn’t kept pace. Australians now need, on average, 49.6% of their income to meet mortgage repayments, the highest level in more than 15 years.
This means every decision, from pricing your home to choosing an agent, needs to be guided by what buyers can truly afford. Let’s unpack how that plays out for both sides.
The biggest takeaway for sellers is this, not every buyer who loves your home can actually afford it. Banks now apply stricter lending criteria, meaning many people who would have qualified for a $900,000 loan two years ago can only borrow around $700,000 today.
That doesn’t mean demand has disappeared; it’s just shifted. Here’s what that means for you:
If you’re selling in Sydney, Melbourne, or Brisbane, fewer people can get finance approval for the full purchase price. Buyers may still attend open homes but be priced out once they talk to their bank.This is why well-priced homes attract more genuine offers, buyers trust that they’re not chasing the impossible.
Overpricing your home by even 3–5% can drastically reduce interest in the first few weeks and that’s when most serious buyers are active. Once a property sits on the market too long, buyers start wondering “what’s wrong with it?”
Your agent’s job is to position your home attractively but realistically, to generate competition without scaring buyers away. A well-priced property can still sell above reserve if competition builds.
Because interest rates and repayments are high, buyers are more deliberate. They’re taking time to research, compare, and think twice before committing. Emotional buying still happens but logic dominates.
That means presentation and marketing are vital. A well-staged home that feels move-in ready can overcome hesitation and justify your asking price.
In suburbs where the salary required is close to what locals earn, homes move quickly. In suburbs where affordability has stretched too far, properties take longer to sell.
For example, homes in Sydney’s west might sell in under 30 days, while premium suburbs like Mosman or Vaucluse can take months because the buyer pool is much smaller.
An experienced local agent understands buyer psychology, how affordability shapes offers, where the strongest buyer demand is coming from, and how to price strategically.They’ll also help you target the right audience: dual-income families, downsizers, or cash buyers.
For buyers, affordability determines everything such as how much you can borrow, what areas you can target, and even how your offers are structured.
Many buyers look at home prices first, then figure out how to make it work. But the smarter way is to start with your borrowing capacity, what a lender will actually approve.
In 2025, even with a $150,000 salary, borrowing limits can range widely depending on your debts, expenses, and deposit size. Mortgage brokers recommend getting pre-approval before making an offer to avoid heartbreak.
More couples, and even friends, are pooling income to afford homes. The Australian Bureau of Statistics notes that over 70% of new loans in 2025 are taken jointly. This can increase borrowing capacity by 30–50%, helping buyers access better homes and locations.
Saving a 20% deposit for a $1 million home means coming up with $200,000 plus stamp duty. That’s why government programs like the First Home Guarantee (5% deposit) are more popular than ever.However, smaller deposits often mean higher monthly repayments, so planning ahead is essential.
Many buyers are moving to more affordable suburbs or regional cities. For instance, instead of inner Sydney, some are looking at the Central Coast, Newcastle, or the Blue Mountains areas that still offer strong growth but lower entry prices.Likewise, in Melbourne, buyers are exploring outer suburbs like Werribee or Cranbourne.
Buying in this market is stressful. But knowing the numbers helps you stay confident. If you understand what’s realistic for your budget and lifestyle, you can make better long-term choices, not desperate ones.
In 2025, Australian housing affordability has reached record lows. CoreLogic data shows that the average buyer now needs around $170,000–$200,000 per year to purchase a median-priced home in a major city. That’s more than double what most Australians earn.
The surge in required income is driven by rising property prices, high interest rates, and tightened lending rules. Even with smaller deposit schemes and government grants, affordability continues to slip further out of reach for many first home buyers.
For home sellers, these trends mean a smaller, more cautious buyer pool, where pricing and presentation matter more than ever. For buyers, it highlights the need for realistic expectations, joint income strategies, and exploring more affordable suburbs or regional areas.
Whether you’re buying or selling, understanding what income levels can actually support a purchase helps you plan smarter, price better, and act with confidence in today’s market.
Because home prices have risen faster than wages. Lenders also require deposits, buffer rates, and limit how much of your income can go to repayments. Many buyers simply don’t meet those requirements.
No, in our simplified model, we usually exclude stamp duty, council fees, and other closing costs. In reality, those can add tens of thousands more, making it even tougher.
That helps a lot. Two incomes combined reduce the burden each person carries. The “salary needed” per person would be lower. But loans, deposits, and stress tests still apply.
Yes, some states offer grants, stamp duty concessions, or low-deposit schemes (e.g. 5%) which ease the barrier. But they don’t eliminate the need for strong income and borrowing capacity.
Yes, generally. Apartments often cost less than detached houses in the same area, so the income required is lower. But in expensive inner suburbs, even units can demand high incomes.
Yes. Lower interest rates reduce your repayments, so the salary needed goes down. But as of 2025, rates are still relatively high compared to past years, limiting that relief.
It depends. If you wait and prices or rates go against you, you might lose advantage. Often the best time is when your suburb demand is still strong. Monitor local listings and buyer capacity.
Reach out to one of our knowledgeable team members below.
