Sydney ranked second least affordable city in world and Melbourne ninth in housing affordability

Sydney has been ranked as the second least affordable city in the world.

The NSW capital has been awarded the gong for a second year in a row in the Demographia International Housing Affordability report.

Adelaide ranked 14th, Brisbane 15th and Perth 50th.

Sydney was ranked the third least affordable city in the world in the report in 2021 before rising to second place in 2022.

The city’s median house price of $1.2million is 13 times an average, full-time salary of $94,000 before a mortgage deposit is factored in. 

While Sydney’s median house price has fallen by 14.7 per cent during the past year, they surged by 27.7 per cent during the pandemic, a level well above the 3.3 per cent increase in wages, CoreLogic and Australian Bureau of Statistics data showed.

During the peak of the boom, when Reserve Bank interest rates were at a record low of 0.1 per cent, house prices rose in some suburbs by a level that was significantly higher than the 7.8 per cent inflation rate, also known as the consumer price index.  

‘Sydney prices increased 6.0 times the CPI, Brisbane 5.2 times, Melbourne 4.9 times and Perth 4.2 times,’ it read.

Source of data and images: dailymail