House prices in Australia’s capital cities have skyrocketed by an astounding 3,435% over the past 50 years, far surpassing wage increases, according to a recent analysis by Money.com.au.
While property values surged, the median full-time wage grew only by 1,183% in the same period, highlighting a significant affordability gap for prospective homeowners.
In 1975, the median house price in major cities was four to five times the annual median wage of $6,700.
Today, however, this figure has ballooned to 12 times the current median wage of $86,070, creating a widening gulf between income and housing costs.
“We can put to rest any debate about which generation had it easier,” said Peter Drennan (pictured above), Money.com.au’s research and data expert.
“The Silent Generation and Baby Boomers bought homes when prices were just four to five times the median wage, while today’s families are paying double to triple that.”
Sydney recorded the steepest increase in home prices, climbing by 4,645% over 50 years.
In 1975, the median house price in Sydney was $34,300, a figure dwarfed by today’s $1,627,625.
Monthly mortgage payments, once 44% of the median monthly wage, now exceed the median income at 143%, posing financial strain for even dual-income households.
Brisbane’s property market, the second fastest-growing among capital cities, has surged by 3,801% since 1975.
The median house price in Brisbane rose from $23,700 to $924,498, now 11 times the annual median wage.
The average monthly mortgage cost increased from 31% to 81% of monthly wages over the same period.
In Melbourne, house prices have jumped by 3,496% over 50 years.
With a 1975 median house price of $28,700, the figure has now crossed the million-dollar threshold to reach $1,032,020, representing a twelvefold increase relative to the median wage.
The average mortgage payment went from 37% of monthly income to 91%.
Adelaide’s housing prices rose by 3,351% over five decades.
From a median house price of $26,150 in 1975, today’s average is $902,332, now 10 times the annual median wage.
Monthly mortgage payments, once 34% of income, now reach 79%.
House prices in Perth climbed by 3,075% since 1975, reaching $777,921 from a starting median of $24,500.
The monthly mortgage payment, formerly 32% of median income, now consumes 68%.
Canberra’s median house price has grown from $33,600 in 1975 to $1,049,719 today.
Mortgage payments, which were 44% of the monthly wage, now require 92%.
Hobart’s house prices have grown more slowly than other capitals, rising 2,657% over 50 years.
The median price increased from $25,850 to $712,648, while mortgage costs went from 34% to 63% of monthly income.
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