It takes two to tango if you’re pursuing the Australian dream of homeownership according to Compare the Market, with new analysis finding less than 1% of metropolitan suburbs are affordable* for single people on an average salary.
The experts used CoreLogic’s median property data to calculate average repayments for 2,163 capital city suburbs, and found that single people earning average salaries would be priced out of 99.08% of locations.
Units were the exception, with a handful of suburbs in Greater Darwin – Bakewell, Driver, Gray, Millner and Rosebery – as well as Orelia in Perth, rated affordable for singles on average incomes.
Couples enjoy more opportunities, with two average wages unlocking up to 20.85% of suburbs in the greater city regions: 165 suburbs in Brisbane, 126 in Sydney, 240 in Melbourne, 101 in Adelaide, 32 in Hobart, 177 in Perth and all 42 suburbs assessed in Darwin.
Affordability for singles on an average salary
| Greater capital city suburbs | % of Affordable Suburbs | |
| No | Yes | |
| Australian Capital Territory | 98.96% | 1.04% |
| Greater Adelaide | 100.00% | |
| Greater Brisbane | 99.71% | 0.29% |
| Greater Darwin | 71.43% | 28.57% |
| Greater Hobart | 100.00% | |
| Greater Melbourne | 98.99% | 1.01% |
| Greater Perth | 99.34% | 0.66% |
| Greater Sydney | 100.00% | |
| Grand Total | 99.08% | 0.92% |
| Greater capital city suburbs | # of Affordable Suburbs | |
| No | Yes | |
| Australian Capital Territory | 95 | 1 |
| Greater Adelaide | 301 | |
| Greater Brisbane | 344 | 1 |
| Greater Darwin | 30 | 12 |
| Greater Hobart | 45 | |
| Greater Melbourne | 393 | 4 |
| Greater Perth | 300 | 2 |
| Greater Sydney | 635 | |
| Grand Total | 2143 | 20 |
Affordability for couples on an average
| Greater capital city suburbs | % of Affordable Suburbs | |
| No | Yes | |
| Australian Capital Territory | 32.29% | 67.71% |
| Greater Adelaide | 66.45% | 33.55% |
| Greater Brisbane | 52.17% | 47.83% |
| Greater Darwin | 100.00% | |
| Greater Hobart | 28.89% | 71.11% |
| Greater Melbourne | 39.55% | 60.45% |
| Greater Perth | 41.39% | 58.61% |
| Greater Sydney | 80.16% | 19.84% |
| Total | 56.17% | 43.83% |
| Greater capital city suburbs | # of Affordable Suburbs | |
| No | Yes | |
| Australian Capital Territory | 31 | 65 |
| Greater Adelaide | 200 | 101 |
| Greater Brisbane | 180 | 165 |
| Greater Darwin | 42 | |
| Greater Hobart | 13 | 32 |
| Greater Melbourne | 157 | 240 |
| Greater Perth | 125 | 177 |
| Greater Sydney | 509 | 126 |
| Total | 1215 | 948 |
Compare the Market property expert Andrew Winter said staggering value growth had left hopeful buyers on average wages in the dust.
“Wage growth has not kept pace with property prices over the past five years, with people on average salaries no longer able to afford in our capitals without coupling up with a loved one, trusted friend or family member,” Mr Winter said.
“When we talk about affordability, we often think of the size of the deposit, but it’s actually the ongoing cost of monthly repayments that are the real strain for most new homeowners.
“On top of that, they’re often paying for home and contents cover, council rates and repairs for the first time, reducing their typical budget by thousands of dollars over the year.
“Right now, while interest rates remain at their highest level in over a decade, it’s so important to shop around for the most competitive rates, and compare insurances to minimise that burden as much as possible.”
CoreLogic Head of Research Eliza Owen said singles are disproportionately disadvantaged when it comes to accessing home ownership.
“Whether it’s coupling up, living with parents or just tapping into the back of mum and dad, buyers need increasingly innovative ways to break through affordability barriers.”
“There are still opportunities for single buyers, but it might mean moving up into apartments, moving out to the city fringe, or investing in more affordable cities.”
Most affordable suburbs for average couples
| Suburb | Dwelling type | Monthly repayments | % of income required for repayments |
| Greater Brisbane | |||
| Kooralbyn | Units | $1,445 | 12.4% |
| Goodna | Units | $1,883 | 16.1% |
| Logan Central | Units | $1,900 | 16.2% |
| Woodridge (Qld) | Units | $1,971 | 16.8% |
| Mount Warren Park | Units | $2,035 | 17.4% |
| Sydney | |||
| Carramar | Units | $1,879 | 15.6% |
| Berkeley Vale | Units | $1,961 | 16.3% |
| Cabramatta | Units | $2,180 | 16.7% |
| Liverpool | Units | $2,189 | 17.9% |
| Mount Druitt | Units | $2,192 | 18.1% |
| Melbourne | |||
| Melton South | Units | $1,734 | 14.3% |
| Carlton | Units | $1,756 | 14.5% |
| Notting Hill | Units | $1,796 | 14.8% |
| Melton | Units | $1,811 | 14.9% |
| Travancore | Units | $1,842 | 15.2% |
| Adelaide | |||
| Salisbury | Units | $2,035 | 18.8% |
| Salisbury East | Units | $2,174 | 20.1% |
| Paralowie | Units | $2,175 | 20.1% |
| Elizabeth North | Houses | $2,279 | 21.0% |
| Klemzig | Units | $2,284 | 21.1% |
| Perth | |||
| Orelia | Units | $1,520 | 11.7% |
| Dudley Park | Units | $1,947 | 15.0% |
| Wellard | Units | $1,967 | 15.1% |
| Shoalwater | Units | $1,980 | 15.2% |
| Bibra Lake | Units | $2,037 | 15.7% |
| Hobart | |||
| Claremont | Units | $2,059 | 19.7% |
| Glenorchy (Tas.) | Units | $2,110 | 20.2% |
| Brighton (Tas.) | Units | $2,116 | 20.2% |
| Gagebrook | Houses | $2,171 | 20.7% |
| Risdon Vale | Houses | $2,173 | 20.8% |
| Darwin | |||
| Bakewell | Units | $1,348 | 10.4% |
| Gray (NT) | Units | $1,381 | 10.6% |
| Driver | Units | $1,423 | 10.9% |
| Millner | Units | $1,466 | 11.3% |
| Rosebery (NT) | Units | $1,512 | 11.6% |
Definitions/methodology
*Affordability has been determined by taking the median property price, subtracting a 20% deposit and calculating the repayments on the remaining loan size using a competitive interest rate of 5.97%. The average salary in each state was used to determine the % of salary required to put towards repayments and applied the general rule that no more than 30% of the household income should be put towards repayments in order to live comfortably.
