Sydney continues to be Australia’s least affordable property market, with new data suggesting it takes up to 18 years to save a deposit in many blue-chip locations.
Analysis from Finder has found that Woolhara, Mosman and Waverley are the least affordable LGAs in Australia, with buyers taking about 18 years to save a 20 per cent deposit in those locations.
Woolhara has a median dwelling value of $2.95 million and based on the average weekly income in the LGA of $3,104, it would take a “mind-boggling” 18 years and two months to save a 20 per cent deposit according to Finder.
In Mosman, which has a median value of $2,885,750 and an average weekly income of $3,063, a buyer would save their deposit one month faster.
Back across the bridge in Waverley it would take 16 years and five months to afford a deposit on a property with a median price of $2.345 million, with an average weekly income of $2,742.
Finder Senior Editor of Money Sarah Megginson said property prices had grown at a faster rate than incomes over the past few decades.
“In some suburbs, this contrast is more stark than others,” she said.
“It’s mind-boggling just how long it could take homebuyers to save up for a deposit in some of the country’s pricier suburbs.
“But this doesn’t mean first home buyers should feel discouraged. Having a realistic budget and starting to save early on – even if it’s just $100 a month – will put you on the right track.”
Ms Megginson said inner-city Sydney and Melbourne, in particular, were often unaffordable as demand is high.
“If you’re not willing to compromise on location, make sure you’re keeping realistic expectations when it comes to size, style and the number of bedrooms and bathrooms,” she advised.
On average, it takes a Sydneysider, eight years and two months to save a 20 per cent deposit based on the current $907,500 median house price and average weekly income of $2,117.
Melbourne comes in second at seven years and four months, while Hobart sits in third place with six years and four months after many years of rapid house price growth.
The three most affordable areas in Australia are largely regional, with Cobar, in outback NSW, the easiest to get a foothold into.
Buyers in Cobar take just a year and eight months to save a 20 per cent deposit, based on a $155,000 median house price and an average income of $1,748 per week.
West Coast in Tasmania and Broken Hill in NSW, are the next most affordable locations taking one year and nine months and one year and 10 months respectively to save a deposit.
Overall, mining focused Darwin is the most affordable city in Australia, taking just three years and six months to save a deposit based on a $440,000 median house price and an average income of $2,410 per week.
In Brisbane and Perth it takes five years and one month to save a 20 per cent deposit.
Ms Megginson reminded buyers you don’t need to buy your dream home straight away.
“Your first home is probably not going to be your dream home – and that’s completely normal,” she said.
“You can always upsize to a larger home further down the track once you’ve built up some equity.
“In the meantime, you could consider investing in a more affordable property so you can get your foot on the property ladder sooner than later.”