The fading Australian dream of home ownership

The great Australian dream of home ownership is still alive and well, even among the emerging generations. However, analysis of the largest 7 capital cities in Australia shows a clear trend of both house and unit prices growing faster than incomes over the last four decades.

House prices grow faster than wages

From 1981 to 2026, the average full-time total earnings for Australian adults increased 6.8 times, from $15,800 (1981) to $107,000 (2026).

Over the same period of time, the lowest property price increase was units in Sydney, which increased in price by 12.6 times over this period (from $67,300 in 1981 to $848,000 by 2026). Adelaide house prices experienced the biggest increase over this period, a 28.1x increase, from $39,100 in 1981 to $1,099,000 currently.

When median property prices are converted to average annual incomes, the most affordable units are in Melbourne (5.7 times annual earnings) and the best-priced houses are in Melbourne (10.1x times average annual earnings).

For media enquiries please call 02 8824 3422.