The Amount Of $$$ You Now Need To Mortgage A Sydney Home
The Housing Industry Association's housing affordability index, which measures the ability of households to pay their mortgages, shows that Sydney housing has now reached crisis point.
The new threshold reveals it now takes more than two average full-time wages to affordably service a loan for a typical city home.
Sydneysiders now need to pay $4,729 per month, which works out to $57,000 a year, to service a standard mortgage on an averaged-priced home.
This figure is higher than 30 per cent of the earnings of a Sydney household with two average full-time wages – the portion of income widely accepted to be a manageable housing repayment.
The report found that:
"House buyers in Sydney now require more than double the average income in Sydney to be able to afford the averaged-priced house in that market,"
"This quarter's result is a further widening of the affordability gap between Sydney and everywhere else. It has the lowest affordability in the country by a large margin."
These latest findings come as new opinion polls show there is an unprecedented level of anxiety in the community about the cost of housing following Sydney's property boom over the last five years.