Housing in Australia

The Australian housing market is diverse and offers a range of options from renting to purchasing homes. Over the past few years, the property market has seen steady growth, particularly in major cities like Sydney, Melbourne, and Brisbane. However, housing affordability has become a growing concern, with prices varying significantly across regions.

Affordability

Mean Dwelling Price, states and Territories

Australian Bureau of Statistics

The mean price of residential dwellings in NSW ($$1,222,000) remains the highest in the country, followed by the ACT ($953,900) and Victoria ($900,300). The lowest mean price is in the Northern Territory ($538,000).


Average Weekly earning of Person in NSW = $1900 which comes out as $76396 as annual income

For a couple, average household income will be 2*76396 = $152,792

To buy a average dwelling couple need = 1,222,000(average dwelling price)/152,792 = 7.9 years of income

Housing Price to Average Disposable Salary Ratio

Australian Bureau of Statistics

Disposable Household Income=Gross Household Income−Direct Taxes and Social Contributions+Government and Private Transfers

Let’s say a household has:
  • Total gross income of $150,000 per year.
  • They pay $30,000 in taxes and social contributions.
  • They receive $5,000 in government benefits.

    • The calculation would be: Disposable Household Income = 150,000 −30,000 + 5,000 = 125,000 If the household has 4 members, then: Household Disposable Income per Capita = 125,000/4 = 31,250

    Considerations for Migrants