Australian housing affordability is at a generational low. A household earning the median income in Sydney now needs over 14 years to save a 20% deposit at historical savings rates. But the picture is far from uniform — there are still realistic buying opportunities for median-income households in 2025, if you know where to look.
The affordability crisis by the numbers
The ratio of dwelling prices to household incomes tells the clearest story:
- Sydney: Price-to-income ratio of ~13× (median house ~$1.4M, median household income ~$110,000)
- Melbourne: ~10× (median house ~$900,000)
- Brisbane: ~8× (median house ~$800,000, up from 5× in 2020)
- Adelaide: ~7.5× (median house ~$750,000, among the fastest-growing markets since 2021)
- Perth: ~7× (median house ~$700,000, strong recent growth)
- Hobart: ~7.5× (once Australia's most affordable capital, no longer)
The international benchmark for "severely unaffordable" housing is a price-to-income ratio above 5×. Australia's major capitals have been severely unaffordable by this definition for over a decade.
Where can a median-income buyer still buy?
Affordability is not binary. Within each city, suburbs vary enormously. And beyond capital cities, regional Australia still offers genuine affordability for households earning $70,000–$90,000. Markets worth examining:
Western Australia — regional and outer Perth
The Midwest (Geraldton, Kalgoorlie), the Wheatbelt, and outer Perth suburbs like Armadale, Rockingham, and Mandurah remain affordable by national standards. Perth's strong employment base (mining, construction) and relatively lower prices make WA the most accessible capital city for median-income buyers in 2025.
Queensland — Southeast Queensland and regional
While Brisbane has seen sharp price growth, Southeast Queensland's secondary cities — Ipswich, Logan, Moreton Bay, and the Sunshine Coast hinterland — offer lower entry points. Regional Queensland (Cairns, Townsville, Rockhampton) has remained meaningfully affordable with yields above 5%.
South Australia — Adelaide's outer suburbs
Adelaide has become one of Australia's fastest-growing housing markets since 2021, but outer suburbs (Playford, Salisbury, Port Noarlunga) still offer detached houses under $500,000. SA's relatively low stamp duty and active FHOG program (up to $15,000 for new builds) support first home buyers.
Victoria and NSW — regional centres
The regional shift accelerated by remote work has pushed prices in Geelong, Ballarat, Bendigo, Wollongong, and Newcastle well above pre-pandemic levels — but these markets remain more accessible than inner Melbourne or Sydney. Further inland, markets like Albury-Wodonga, Dubbo, and Shepparton offer genuine affordability.
The impact of interest rates on affordability
The 13 RBA rate rises between May 2022 and November 2023 (increasing the cash rate from 0.1% to 4.35%) dramatically reduced borrowing capacity. A household that could borrow $750,000 in 2022 can borrow approximately $550,000 at the same income in 2025. This has structurally reduced buying power — but also moderated price growth in many markets.
As rates begin to fall (the first cut occurred in February 2025), affordability will improve for those who can qualify at current rates. Borrowers who lock in now before widespread rate cuts drive prices higher again may benefit from both improved debt-servicing costs and property appreciation.
Shared equity schemes
Several state governments offer shared equity schemes where the government co-purchases part of a property, reducing the buyer's loan requirement. Victoria's HomeBuy, WA's Keystart, and SA's HomeSeeker programs are worth researching alongside the federal First Home Guarantee.
How to find your affordable suburb
Use our affordability calculator to enter your income and see every Australian suburb that falls within your budget — updated with current median rents and prices. Filter by state, sort by affordability percentage, and compare rent vs. buy across thousands of suburbs.