Housing affordability in Australia ranks among the worst in the world, a new study has revealed.
The 3rd Annual Demographia International Housing Affordability Survey found Australia to have the most pervasive housing affordability crisis of all the countries in the study. The survey looked at the housing markets in Australia, Canada, Ireland, New Zealand, the UK and the US.
The study also rated every capital city in Australia as 'seriously' or 'severely' unaffordable in the global study of 159 cities. A city is deemed unaffordable when the median house price passes three times the median household incomes. Housing is 'seriously' unaffordable when it passes four times median household income and 'severely' unaffordable when it passes income five times.
Sydney was named the most unaffordable city in Australia and ranked seventh of the 25 most unaffordable housing markets in the world. Perth, Hobart and Melbourne also joined the list. Median prices in Sydney are 8.5 times median income - worse than London at 8.3 times and New York at 7.2 times.