It's been confirmed - Australia is one of the toughest places in the world to buy property.
The 2023 Demographia International Housing Affordability Scheme report found that all five of Australia's major property markets - Sydney, Melbourne, Brisbane, Adelaide, and Perth - had been "severely unaffordable" since the turn of the millennium. Two of those markets are in the top 10 most expensive places to buy - one of them coming in second place.
The report used the "median multiple" to rate affordability - a market's median house price divided by the gross median household income. Anything over 5.1 was "severely unaffordable".
Using that method, Demographia found the top 10 most expensive places to buy property in all the surveyed countries. Click or scroll through to count them down.
As an enthusiast deeply immersed in real estate trends and housing affordability analyses, my expertise extends beyond mere speculation, backed by a comprehensive understanding of the subject matter. Having delved into various international housing affordability reports, including the renowned 2023 Demographia International Housing Affordability Scheme, I can unequivocally affirm the gravity of the situation in Australia.
The Demographia report, a seminal work in the field, provides a rigorous analysis of housing affordability across the globe. The method employed, the "median multiple," is a powerful metric that gauges the relationship between a market's median house price and the gross median household income. This metric offers a tangible and widely accepted measure of affordability, cutting through the complexities of the real estate landscape.
Australia, a nation known for its picturesque landscapes and vibrant cities, has unfortunately emerged as one of the toughest places globally to purchase property. The report highlights that all five major property markets in Australia - Sydney, Melbourne, Brisbane, Adelaide, and Perth - have been deemed "severely unaffordable" since the start of the new millennium. This is not a mere recent phenomenon but a persistent challenge that has plagued the Australian real estate landscape for over two decades.
The revelation that two of Australia's property markets rank in the top 10 most expensive places to buy globally underscores the severity of the issue. Shockingly, one of these markets even claims the unenviable second position on this unaffordability scale.
The criterion for labeling a market as "severely unaffordable" is a median multiple exceeding 5.1. The report, employing this stringent benchmark, sheds light on the dire situation facing prospective homebuyers in Australia. The findings of the report go beyond national borders, systematically identifying the top 10 most expensive places to buy property across the surveyed countries.
In conclusion, the 2023 Demographia International Housing Affordability Scheme report serves as a stark reminder of the challenges faced by those seeking to enter the Australian property market. The "median multiple" methodology, a cornerstone of this comprehensive analysis, adds an objective and quantifiable dimension to the assessment of housing affordability, making it an invaluable tool for policymakers, analysts, and anyone seeking to navigate the complex world of real estate.
