According to Ray White Group Senior Data Analyst, Atom Go Tian, Australian house prices jumped from $871,671 to $918,296 in the year to April 2025, representing a gain of $46,625 while the median annual income sat at $72,592.
“The median annual income in Australia is 1.5 times more than what our houses quietly made for us over the year,” Mr Go Tian said.
Perth has emerged as the standout performer, being the only capital city where houses earned more than their owners.
“Perth residents seem to have it best,” Mr Go Tian said.
“Not only do they earn the second highest annual income across the country, but their houses made the biggest gains in the last 12 months.
“Perth house prices surged by $95,022, climbing from $812,482 to $907,504.
“Even Canberra with annual incomes of $93,351 couldn’t match what Perth houses made.”
The analysis reveals significant variations across other capital cities, with Adelaide showing the most balance.
“In Adelaide, it’s neck and neck with both annual personal income and house price growth sitting at just over $63,000,” Mr Go Tian said.
“Brisbane homeowners are just keeping their noses in front, earning roughly $2,000 more than their houses appreciated.”
The gap widens considerably in the southern capitals, with Melbourne and Canberra showing the greatest disparity between personal income and property performance.
“Melbournians made 5.5 times more than their properties, while Canberrans pulled in 5 times what their houses did,” he said.
The research also highlights a significant shift in market dynamics compared to previous years.
Traditionally, house values grow faster than incomes in expensive areas, with the opposite occurring in more affordable regions.
“Four years ago, during the last census, 78 per cent of suburbs where people out-earned their homes were in regional areas with average house prices of $360,000,” Mr Go Tian said.
“Today, the suburbs where you earn more than your house have prices between $1.9-3.9 million.”
Melbourne dominates the list of suburbs where people earn more than their houses, with the only non-Melbourne suburbs being Balmain in Sydney, and Yarralumla and Deakin in Canberra.
“What’s striking is these are all wealthy suburbs with annual incomes between $130,000-$156,000 – double Australia’s median,” he said.
Conversely, Perth dominates the list where houses earn more than people, with Clear Island Waters on the Gold Coast, and Brisbane’s Sunnybank and Macgregor being the only non-Perth suburbs in this category.
Mr Go Tian said this represents a major market shift from previous patterns.
“Previously, Sydney’s Eastern and Northern suburbs led Australia for house price growth, outpacing local incomes by 6-8 times,” he said.
“Now those luxury markets have cooled, and growth has moved to mid-tier markets in Perth, Gold Coast and Brisbane as buyers seek better value.”
