The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
FROM SITE SELECTION TO DELIVERY PROPERTY DEVELOPMENT MASTERCLASS
PROPERTY DEVELOPMENT MASTERCLASS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ResidentialRenee McKeownThu 23 Jan 20

Australia’s Housing Market ‘Severely Unaffordable’

TUD+ MEMBER CONTENT
9c94aa5c-60e1-4a3f-a112-37da939f396d
SHARE
132
print
Print

The only places more expensive to live than some of Australia’s biggest cities are Hong Kong and Vancouver according to a global ranking system.

Sydney ranked third and Melbourne fourth compared to 309 housing markets across eight countries in the annual Demographia international housing affordability survey.

Hong Kong topped the list followed by Vancouver, Sydney, Melbourne, Taraunga-Western Bay of Plenty (New Zealand), Los Angeles, Toronto, Auckland, San Jose and five cities tied for 14th place including the Sunshine Coast.

Other Australian regions to make top 50 on the list were Gold Coast 18th, Geelong 24th, Hobart 31st, Adelaide 34th, Fraser Coast 41st, Canberra and Brisbane together at 44th, Perth and Ballarat 49th.

There was only one affordable market in Australia which was Gladstone placing 281st or 29th most affordable city.

▲Gladstone ranked 29th most affordable in global survey.


The houses were ranked by median multiple (house price divided by income) with a rank of 3 and under classified as “affordable”, while 3.1-4 is “moderately unaffordable”, 4.1-5.0 “seriously unaffordable” and anything classified as 5.1 and over was characterised as “severely unaffordable”.

The top 50 cities ranked above 6, with Melbourne at 9.5, Sydney 11, Vancouver 11.9 and Hong Kong 20.8.

That is a slight improvement in affordability for Sydney which ranked 11.7 last year while Melbourne remained the same.

In contrast, Gladstone ranked 2.8 and most affordable cities Fort MacMurray (Canada) 1.8, Peoria (US) 2.1 and Davenport (US) 2.2.

The report said Australia's five major housing markets were “severely unaffordable” with prices doubling since the early 2000s.

“Despite what has been called the largest Sydney price reduction in 35 years, house prices relative to incomes are more than double the rate of the early 1980s,” report authors Wendell Cox and Hugh Pavletich said.

“In Sydney and Melbourne, median income households need at least three years’ more income to pay for the median priced house than in 2004, when the first Demographia Survey was published.”

ResidentialInternationalAustraliaReal EstateSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
London skyline near the walkie talkie tower showing the 85 gracechurch street development.
Exclusive

Basilica to Business: London Office Tower’s Historic Rework

Renee McKeown
6 Min
Hotel Indigo Adelaide hero
Exclusive

Neighbourhood Hotels Reinvent Urban Hospitality

Clare Burnett
5 Min
Melbourne CBD empty site
Exclusive

Melbourne Developers Hit Back at Mayor’s ‘Lazy Landlord’ Plans

Leon Della Bosca
7 Min
The land value of many fuel retailing sites is outweighing their operational value.
Exclusive

Shrinking Servo Network Heralds Development Prospects

Patrick Lau
7 Min
Sydney airspace
Exclusive

Money Out of Thin Air: The Multibillion-Dollar Rooftop Housing Play

Vanessa Croll
8 Min
View All >
The Accolade on Moore, in Canberra, forms part of Greystar's play for rapid PBSA expansion.
Student Housing

Greystar Hits 4000 Australian PBSA Beds, Aims for 10,000

Patrick Lau
Close to the 2032 Olympics Athletes' Village, the tower is currently 100 per cent tenanted.
Office

Quintessential Pays $175m for Green Square North Tower

Patrick Lau
Sponsored

Immersive Walkthroughs Give Older Stock a Competitive Edge

Partner Content
Once-overlooked fringe offices are now leasing magnets—if you know how to repackage them…
LATEST
The Accolade on Moore, in Canberra, forms part of Greystar's play for rapid PBSA expansion.
Student Housing

Greystar Hits 4000 Australian PBSA Beds, Aims for 10,000

Patrick Lau
3 Min
Close to the 2032 Olympics Athletes' Village, the tower is currently 100 per cent tenanted.
Office

Quintessential Pays $175m for Green Square North Tower

Patrick Lau
4 Min
Marketing

Immersive Walkthroughs Give Older Stock a Competitive Edge

Partner Content
4 Min
Billbergia Leeds St Rhodes hero.
Residential

Billbergia Six-Tower Rhodes Scheme Wins Approval

Clare Burnett
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/australias-housing-market-severely-unaffordable-