Sydney housing affordability third most expensive in the world
When comparing median house price to income, Sydney is the third most unaffordable city in the world to buy a house after Hong Kong and Vancouver.
The Annual Demographia International Housing Affordability Survey showed that housing affordability in Sydney deteriorated to a Median Multiple of 9.8, which was followed by San Francisco and San Jose (each 9.2).
Melbourne didn’t fare much better, listed as the sixth most unaffordable city with a Median Multiple of 8.7.
The report explained that while historically house prices have been "remarkably similar" in markets like Australia, New Zealand, the United Kingdom and the United States, in recent decades, house prices have been decoupled from this relationship in a number of markets, such as Vancouver, Sydney, San Francisco, London, Auckland and others.
Since the survey launched 11 years ago all of Australia's five major metropolitan areas have been listed as severely unaffordable each year. Mozo advises Aussies looking at purchasing a home to always search the home loan market for a competitive deal.
The survey covered 378 metropolitan markets in nine countries including Australia, New Zealand, UK, US, Canada, China, Japan and Singapore.