A snapshot from July 2025. Prices and rates have moved since; the rate section below is updated to October 2026. Price-to-income ratios in the capitals were at or near record highs, but they varied widely between cities and between suburbs within each one.
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; approximate, mid-2025)
- 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)
Demographia's International Housing Affordability survey rates a median price above 5× median household income as “severely unaffordable”. Every capital above is well past it.
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 took the cash rate from 0.1% to 4.35% and cut borrowing capacity. On our borrowing capacity calculator, a $100,000 earner can borrow about $697,000 at a 2.5% home loan rate and about $483,000 at 6.2%.
Since this was written: the RBA cut three times in 2025 (February, May and August) to 3.60%, then raised the rate five times from February 2026, to 4.85% on 4 November 2026.
Shared equity schemes
The federal Help to Buy scheme co-purchases up to 30% of an existing home or 40% of a new one, with a minimum 2% deposit, and the 5% Deposit Scheme removes LMI for eligible first home buyers. Some states run their own low-deposit or shared-equity programs; check your state housing authority.
How to find your affordable suburb
The map colours suburbs by whether their median price fits a budget you enter, using current median prices and rents.