A new report by Compare The Market has revealed the suburbs across Australia where a single-income purchaser can still afford to buy a median priced home.
And it’s not good news.
Actually, it’s straight up terrible news, with the research revealing singles are locked out of every single suburb in some capital cities, and just a few in others.
Nationally, less than 1 per cent of metropolitan suburbs are affordable for single people on an average salary – the national average salary is $73,339.50.
Compare the Market property expert Andrew Winter said staggering value growth had left hopeful buyers on average wages in the dust.
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
Andrew Winter of Compare The Market. Picture: Luke Marsden.
“Wage growth has not kept pace with property prices over the past five years, with people on average salaries no longer able to afford in our capitals without coupling up with a loved one, trusted friend or family member,” Mr Winter said.
“When we talk about affordability, we often think of the size of the deposit, but it’s actually the ongoing cost of monthly repayments that are the real strain for most new homeowners.”
Like I said, not great news.
Singles, here’s where you can still do it in our four major capitals – assuming you still can …
SYDNEY
Singles earning an average wage have become completely locked out of the Sydney property market.
The median weekly income in Sydney is $1,416 a week, according to ABS data, which is not enough to service a loan without falling into mortgage stress in any suburb across Greater Sydney.
It’s not good news for Sydney buyers, I’m afraid. Picture: Getty Images
Mortgage stress was defined as a homeowner spending more than 30 per cent of their income on repayments.
Couples had more opportunities, with two average wages unlocking 126 or 20 per cent of Sydney suburbs.
MELBOURNE
Melbourne singles have been squeezed out of almost every corner of the city, with just four suburbs left within reach of an average solo-income earner.
New research from Compare the Market shows only units in Melton, Melton South, Notting Hill and Carlton, where the median price is typically kept low by a high prevalence of student accommodation, still have prices affordable to those who haven’t partnered up.
It equates to just 1.01 per cent of Melbourne suburbs being within their reach.
Melbourne buyers are feeling the pinch. Picture: iStock
But couples, or friends and family who team up to pursue a home with an average dual-income, have their choice of a hefty 240 suburbs around the city, more than 60 per cent of the total assessed.
The Compare the Market research took the $1400 a week typical Victorian single-income and contrasted it with the repayments needed for median home prices purchased with a 20 per cent deposit.
ADELAIDE
Looking to buy a home in SA on a single income?
Well, good luck to you, a new report says, with fresh data indicating none of the 301 South Australian suburbs Compare The Market has figures for are affordable to a single-income buyer.
It puts Adelaide on par with Hobart and Sydney where 100 per cent of all metropolitan suburbs required a dual salary to purchase a median-priced home.
Adelaide was the second worst city in the nation for dual-income househunters – and by a long way – with hopeful buyers only able to afford to buy in one in three suburbs. Just 33 per cent of all suburbs, or 101, of them, could be bought by an average-earning couple without sending themselves into mortgage stress.
The average Adelaide income is $65,000.
Vinnie Jurkovic, 21, has managed to buy a property off the plan at the Riverlea, north of Adelaide. Picture: Dean Martin
The report found the cheapest homes for average couples were units in Salisbury, Salisbury East Paralowie and Klemzig, and Elizabeth North houses, where mortgage repayments needed were 18.8 per cent, 20.1 per cent, 20.1 per cent, 21.1 per cent and 21 per cent of an income respectively.
Despite having the odds stacked against him as a single bloke, Vinnie Jurkovic, 21, has managed to buy a home on his own. Click below to find out how he did it.
BRISBANE
Single homebuyers have been all but priced out of the Brisbane property market with new analysis revealing just one suburb where a solo average wage-earner can afford to buy.
Research showed out of 345 suburbs in the Brisbane region, the unit market in Kooralbyn was the last bastion of affordability for lone property shoppers.
The comparison service found a single buyer on an average income would need to spend about 24.7 per cent of their wage on repayments for a unit in Kooralbyn, which sits about 100km southwest of the Brisbane CBD.
The average income in Brisbane is $70,200.
Brisbane singles have been pretty much priced out of the market. Picture: Supplied
Dual-income buyers had much more choice in the Brisbane market with the Compare the Market analysis showing a couple with average incomes could afford to buy in 47 per cent of the region or 165 out of 180 suburbs.
Their best bet was the unit markets in Kooralbyn, where a couple would only need 12.4 per cent of two average incomes to service a mortgage.
This was followed by the unit markets in Goodna (16.1 per cent), Logan Central (16.2 per cent), Woodridge (16.8 per cent) and Mount Warren Park (17.4 per cent).
* Compare The Market’s calculations assumed an average $65,000 income, a 20 per cent deposit, with repayments on the remaining loan paid at a 5.97 per cent interest rate.
