Thursday, May 29, 2008
May 2006: Sydney is the 6th least affordable city in the world
If you live in Sydney and have not bought a house yet, you might have to get used to renting, writes Michael Duffy. Late last year an American pro-growth consultancy named Demographia announced that the median house in this city cost 8.5 times the median household income. This was up from a multiple of five in the 1980s, which even then was steep. Demographia defines "affordable" as a multiple of no more than three. The 2005 result meant housing in Sydney was the sixth least affordable of 100 cities looked at around the world. "Sydney house prices are somewhere between 50 and 60 per cent higher than Melbourne house prices … it is still nearly 10 times average earnings in NSW to buy a house, whereas in Melbourne it is about seven times."