Buying a house in Sydney has long been tough, but new figures show it’s now harder than ever. With soaring prices and higher interest rates, the income needed to buy a home in Australia’s biggest city has reached record levels — and for most people, that dream is slipping further away.
Sydney’s Housing Costs Hit New Heights
Fresh data from Realestate.com.au reveals that the average household now needs to earn around $280,000 a year to comfortably afford a typical Sydney house. That’s nearly three times the national average income, showing just how far out of reach home ownership has drifted for ordinary workers.
The city’s median house price, sitting above $1.6 million, has climbed steadily despite rising interest rates and broader cost-of-living pressures. Buyers who might have once scraped together enough for a modest home are now facing monthly repayments that rival entire annual salaries from a generation ago.
Property analysts say that even households earning well above average wages are struggling to borrow enough from lenders. The combination of high property values and stricter lending standards has left fewer buyers able to meet the criteria for a home loan.
The Shrinking Dream of Home Ownership
For younger Australians, especially first-home buyers, Sydney’s housing market now feels like a closed shop. Many are turning to smaller apartments or moving to outer suburbs where prices are slightly less daunting. Others have given up altogether, choosing to rent long-term or move interstate in search of affordability.
The divide between those who own property and those who don’t is widening. Homeowners are sitting on huge equity gains, while renters face climbing costs and little stability. Economists warn that this growing gap could have lasting social and financial consequences if the trend continues.
How Sydney Compares to the Rest of Australia
While Sydney leads the nation in unaffordability, other capitals aren’t far behind. Melbourne and Brisbane have both seen sharp increases in the income required to buy a home, though still well below Sydney’s threshold. In Adelaide, Perth, and Hobart, houses remain cheaper, but affordability is still worsening as wages lag behind property prices.
Even with regional migration on the rise, the gap between income growth and housing costs continues to stretch across nearly every market.
What’s Next for Sydney Buyers?
Experts say that without major policy changes or a significant increase in housing supply, Sydney’s affordability crisis will persist. Some relief could come if interest rates fall later in 2026, but few expect dramatic improvements.
Until then, aspiring homeowners face a difficult reality: saving harder, borrowing more, or lowering expectations. For many, the idea of owning a house in Sydney now feels less like a plan and more like a fantasy — one reserved for those earning well into six figures.
