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The Australian and New Zealand housing markets are the least affordable in the English speaking world, the 2008 Demographia Survey has revealed.
The study of over 227 cities worldwide found Australia and New Zealand have the worst housing affordability, with the cost of purchasing a home in both countries 6.3 times the annual household earnings.
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Australia had the greatest number of cities on the least affordable list, with 18 falling into the top 50.
Leading Australia’s least affordable markets was the Western Australian town of Mandurah, which ranked number six on the list; it was closely followed by the Sunshine Coast at number seven.
When interest costs on a mortgage are added to a property's purchase price, New Zealanders are in the worst position – with households with a 100 per cent mortgage over thirty years expected to use 18.6 years’ income towards house and mortgage costs (excluding rates, taxes, maintance and other costs).
Australian homebuyers can expect to use 17.9 years’ income to pay off their home.
“The situation is absurd,” said co-author of the Annual Demographia Survey Wendall Cox.
“Considering that when a New Zealand or Australian household buy a house, they are paying more for the actual house than their counterparts in Atlanta, Houston, Dallas Fort Worth and Indianapolis are paying for their houses and mortgage interest charges combined,” he said.
Least affordable: Australian cities in the global top 50
|
Global Rank |
Market |
Un-affordability rating |
|
6 |
Mandurah, WA |
9.5 |
|
7 |
Sunshine Coast, QLD |
9.3 |
|
11 |
Gold Coast, QLD |
8.6 |
|
11 |
Sydney, NSW |
8.6 |
|
19 |
Perth, WA |
7.6 |
|
22 |
Melbourne, VIC |
7.3 |
|
24 |
Rockingham, WA |
7.2 |
|
28 |
Bundaberg, QLD |
7.0 |
|
28 |
Wollongong, NSW |
7.0 |
|
33 |
Bunbury, SA |
6.7 |
|
35 |
Adelaide, SA |
6.5 |
|
36 |
Brisbane, QLD |
6.4 |
|
36 |
Cairns, QLD |
6.4 |
|
40 |
Geelong, VIC |
6.3 |
|
40 |
Hobart, TAS |
6.3 |
|
40 |
Newcastle, NSW |
6.3 |
|
45 |
Townsville, QLD |
6.2 |
|
46 |
Mackay, QLD |
6.1 |
Published: 21-01-08
