Housing costs surge 3,400% over 50 years as wages lag behind

Australian house prices have risen nearly three times faster than wages over the past five decades, according to new research revealing a dramatic decline in affordability.

Analysis by Money.com.au showed capital city house prices increased by 3,435 per cent since 1975, while median full-time wages grew by just 1,183 per cent.

Peter Drennan, a research expert at Money.com.au, said housing costs were at historic highs.

“The Silent Generation and Baby Boomers bought homes when prices were just four to five times the median wage, while today’s families are paying double to triple that,” he said.

Sydney recorded the highest price growth at 4,645 per cent, with median house prices jumping from $34,000 in 1975 to $1,627,625 in 2024.

Monthly mortgage payments in Sydney now consume 143 per cent of the median wage, compared to 44 per cent in 1975.

Brisbane house prices rose 3,801 per cent to $924,498, pushing the price-to-wage ratio from four times to 11 times annual earnings.

Melbourne’s median house price exceeded $1 million after growing 3,496 per cent from $28,700 in 1975.

Property expert Mansour Soltani said Adelaide had built a reputation for stability, with prices increasing 3,351 per cent to $902,332.

Perth recorded 3,075 per cent growth to $777,921, while Canberra prices rose 3,024 per cent to over $1 million.

Hobart showed the slowest growth at 2,657 per cent, with median prices reaching $712,648.