Sydney ranks as the second-most-unaffordable housing market
Sydney ranks as the second-most-unaffordable housing market in the English-speaking world, stoking fears runaway price increases have made Australia a less equitable country.
Update Sydney was ahead of only Hong Kong in a survey which ranked 325 markets by their affordability. Melbourne came in at No. 321 and the Sunshine Coast and Gold Coast also rated badly.
The Demographia International Housing Affordability Survey covering markets in six English-speaking nations and Hong Kong found that the ratio of house prices to median annual household income was 9.6 in Sydney. It put the median house price at $634,300 and median income $66,200.
Hong Kong had an income/house price ratio of 11.4, while Saginaw, in Michigan, US, ranked No. 1 with 1.6.
Demographia, a US-New Zealand anti-regulation group, considers markets with a median multiple of three or less “affordable”, while those with 5.1 or more are considered “severely unaffordable”. All major markets in Australia were considered “severely unaffordable”, the report concluded.
A US geographer and author, Joel Kotkin, said that even after the housing bubble implosion in the US and Britain beginning in 2008, the ratio of home prices to incomes has continued to grow in major cities such as Los Angeles, San Francisco, Boston, London, Vancouver and Toronto.