Key figures at a glance
11.79×
In Sydney, a typical established house costs 11.79 times yearly household income, the highest figure of any Australian capital city.
5.60×
In Darwin, a typical established house costs 5.60 times yearly household income, the lowest figure of any Australian capital city.
8 of 8
All eight capital cities have loan repayments above the 30% comparison benchmark at the serviceability-style rate.
15.7yrs
In Sydney, it takes 15.7 years to save a 20% deposit, based on putting aside 15% of household income each year. The same measure takes 7.5 years in Darwin.
This comparison covers Australia's eight capital cities only. It uses ABS capital-city established house transfer prices and 2021 Census household income updated using the ABS Wage Price Index, so cities and towns outside the eight capital-city areas are outside its scope.
Section 01Established house price vs income
How do established house prices compare with income by capital city?
A typical established house costs between 5.60 and 11.79 times yearly household income across Australia's capital cities, with the lowest ratio in Darwin and the highest in Sydney. The measure divides the ABS March quarter 2026 median established house transfer price by household income updated from the 2021 Census using the ABS Wage Price Index, giving a single figure that compares prices against local earnings in each city.
- In Sydney, a typical established house costs 11.79 times yearly household income, the highest figure of any capital city.
- Darwin is the most affordable capital city on this measure. A typical established house there costs 5.60 times yearly household income, supported by lower house prices and higher typical household income.
- Adelaide has the second-highest ratio at 10.44 times yearly household income, followed by Brisbane at 10.25, Perth at 8.84, Hobart at 7.91, Canberra at 7.44 and Melbourne at 7.37.
- Canberra has the highest typical household income of any capital at $143,947 a year, which keeps the city at 7.44 times yearly household income even with a typical established house price of $1,071,300.
Established house price as a multiple of household income, Australian capital cities, 2026
Typical established house price divided by typical annual household income
Sydney's ratio of 11.79 is 2.1 times Darwin's 5.60. Adelaide and Brisbane are the only other cities above 10.
Source: ABS Census of Population and Housing 2021, updated to March quarter 2026 using the ABS Wage Price Index. House price data from ABS Total Value of Dwellings, March Quarter 2026, Table 2: median price and number of transfers, capital city and rest of state. Figures use March quarter 2026 median established house transfer prices for each capital city.
Highest price-to-income ratio
11.79×
Sydney. On this measure, a typical established house costs almost 12 times yearly household income.
Lowest price-to-income ratio
5.60×
Darwin. Lower established house prices combined with higher-than-average typical household income make it the lowest-ranked capital city on this measure.
Why Adelaide ranks less affordable than Perth
Adelaide and Perth have established house prices $20,000 apart, at $980,000 and $1,000,000 respectively. Adelaide has the higher price-to-income ratio because its typical household income is lower. Perth households earn $19,230 more per year than Adelaide households, at $113,132 compared with $93,902, which gives Perth the lower ratio on this measure even with the $20,000 higher price.
Established house price and price-to-income ratio, Australian capital cities, 2026
| City | Typical established house price | Typical annual household income | Years of income |
|---|---|---|---|
| Sydney | $1,485,000 | $125,992 | 11.79 |
| Adelaide | $980,000 | $93,902 | 10.44 |
| Brisbane | $1,150,000 | $112,161 | 10.25 |
| Perth | $1,000,000 | $113,132 | 8.84 |
| Hobart | $740,000 | $93,538 | 7.91 |
| Canberra | $1,071,300 | $143,947 | 7.44 |
| Melbourne | $850,000 | $115,315 | 7.37 |
| Darwin | $750,000 | $133,999 | 5.60 |
The 'Years of income' column is the typical established house price divided by typical annual household income. A lower figure means the price is smaller relative to local earnings.
Section 02Modelled loan payments vs income
How much income goes to home loan payments by capital city?
Modelled home loan payments range from 42.8% of typical monthly household income in Darwin to 90.2% in Sydney, and exceed the 30% comparison benchmark in all eight capital cities. The 30% threshold is commonly used as a broad housing-cost benchmark, especially for lower-income households; this article uses it as a comparison threshold, not a borrowing-capacity test. The figures model an 80% loan at a serviceability-style rate, so they sit above what many borrowers would pay at advertised rates.
Modelled home loan payments as a share of household income, Australian capital cities, 2026
80% loan over 30 years at a serviceability-style 8.9% rate; share of typical monthly household income
All eight cities sit above the 30% comparison benchmark. Sydney's 90.2% share is 2.1 times Darwin's 42.8%.
Source: Repayments modelled on 80% of the ABS March quarter 2026 median established house transfer price at a serviceability-style 8.9% per year over 30 years. Income figures are based on the ABS 2021 Census, updated to March quarter 2026 using the ABS Wage Price Index.
Where the 8.9% rate comes from
The 8.9% rate used in these repayment estimates is a serviceability-style assumption rather than a live advertised rate. It approximates the April 2026 RBA owner-occupier principal-and-interest new-loan rate of 5.92%, rounded to about 5.9%, plus the standard 3 percentage point serviceability buffer that APRA requires lenders to apply when assessing a borrower's capacity to repay. Combining the two gives roughly 8.9%, which reflects the rate level borrowers are typically tested against rather than the rate they would pay day to day.
90.2%
Sydney modelled repayment share
On a typical Sydney established house bought with a 20% upfront payment, modelled loan payments of $9,474 would take up 90.2% of the typical monthly household income of $10,499 at the serviceability-style rate. Darwin has the lowest repayment-to-income share in this comparison, at 42.8%.
Modelled monthly home loan payment and share of income, Australian capital cities, 2026
| City | Amount borrowed | Modelled monthly payment | Monthly income | Share of pay | Above 30% benchmark? |
|---|---|---|---|---|---|
| Sydney | $1,188,000 | $9,474 | $10,499 | 90.2% | Yes |
| Adelaide | $784,000 | $6,252 | $7,825 | 79.9% | Yes |
| Brisbane | $920,000 | $7,336 | $9,347 | 78.5% | Yes |
| Perth | $800,000 | $6,380 | $9,428 | 67.7% | Yes |
| Hobart | $592,000 | $4,721 | $7,795 | 60.6% | Yes |
| Canberra | $857,040 | $6,834 | $11,996 | 57.0% | Yes |
| Melbourne | $680,000 | $5,423 | $9,610 | 56.4% | Yes |
| Darwin | $600,000 | $4,785 | $11,167 | 42.8% | Yes |
The 30% threshold is a broad housing-cost benchmark, especially for lower-income households, and is used here only as a comparison threshold. These are modelled figures for buying a typical established house in 2026 with a new loan, at a serviceability-style rate. Actual repayments at many advertised rates would be lower under the same loan size and term, and existing homeowners with older loans may pay a different amount. Payments modelled on an 80% loan at 8.9% per year over 30 years.
These are modelled repayments, not live loan quotes
These figures use the typical household income for each city. Some households earn more than this figure, while others earn less. The 8.9% rate is a serviceability-style assumption, approximating the April 2026 RBA owner-occupier principal-and-interest new-loan rate of 5.92%, rounded to about 5.9%, plus the standard 3 percentage point serviceability buffer, so the modelled repayments are a stress-test comparison rather than the rate a borrower would necessarily pay.
Section 03Saving a deposit
How long does it take to save a 20% deposit by city?
Saving a 20% deposit takes from 7.5 years in Darwin to 15.7 years in Sydney, a gap of 8.2 years across the eight capital cities. The estimate assumes a household saves 15% of typical yearly income, starting from zero; the spread tracks differences in established house prices and household incomes by city.
- In Sydney, a 20% deposit comes to $297,000, the largest of any capital. At a saving rate of 15% of typical yearly household income, the timeline is 15.7 years.
- In Darwin, the same deposit is $150,000, $147,000 less than Sydney's, and it takes 7.5 years to save.
- Adelaide at 13.9 years and Brisbane at 13.7 years take the second and third longest of any capital, for different reasons: Adelaide's timeline is long relative to its $980,000 established house price because its household income is the second-lowest of any capital, while Brisbane's reflects its $1,150,000 established house price, the second-highest after Sydney.
- Melbourne has the shortest timeline after Darwin at 9.8 years, 0.1 years below Canberra's 9.9 years; Canberra's larger deposit of $214,260 is offset by household income of $143,947, the highest of any capital.
- Hobart takes 10.5 years and Perth 11.8 years, placing them between Canberra's 9.9 years and Brisbane's 13.7 years.
Years to save a 20% deposit, Australian capital cities, 2026
Saving 15% of typical annual household income, starting from zero, no interest or assistance
Five of the eight capital cities require more than 10 years. Government first-home deposit support could shorten these timelines for eligible buyers and is not reflected here.
Source: ABS 2021 Census income data, updated to March quarter 2026 using the ABS Wage Price Index. Deposit = 20% of the March quarter 2026 median established house transfer price from ABS Total Value of Dwellings.
Sydney deposit to save
$297,000
This is 20% of the typical $1,485,000 Sydney established house price. At a saving rate of 15% of typical Sydney household income, or $18,899 a year, the timeline is 15.7 years.
Darwin deposit to save
$150,000
This is 20% of the typical $750,000 Darwin established house price. At a saving rate of 15% of typical Darwin household income, or $20,100 a year, the timeline is 7.5 years.
Years to save a 20% deposit, Australian capital cities, 2026
| City | 20% deposit needed | Saved per year (15% of income) | Years to save |
|---|---|---|---|
| Sydney | $297,000 | $18,899 | 15.7 years |
| Adelaide | $196,000 | $14,085 | 13.9 years |
| Brisbane | $230,000 | $16,824 | 13.7 years |
| Perth | $200,000 | $16,970 | 11.8 years |
| Hobart | $148,000 | $14,031 | 10.5 years |
| Canberra | $214,260 | $21,592 | 9.9 years |
| Melbourne | $170,000 | $17,297 | 9.8 years |
| Darwin | $150,000 | $20,100 | 7.5 years |
Amount saved per year equals 15% of typical household income before tax. Adelaide has a smaller deposit target than Brisbane, at $196,000 compared with $230,000, but takes 0.2 years longer to save for it, at 13.9 years compared with 13.7 years, because Adelaide households earn less, at $93,902 compared with $112,161, and set aside less each year.
Section 04Most affordable
Why Darwin ranks as the most affordable capital city
Darwin records the lowest figure on all three measures: a price-to-income ratio of 5.60, a modelled repayment share of 42.8%, and a 7.5-year deposit timeline. It is the only capital to rank lowest on each. Hobart has the lowest typical established house price at $740,000, $10,000 below Darwin's $750,000, but its household income of $93,538 compared with Darwin's $133,999 places it behind Darwin on affordability.
Melbourne at 9.8 years and Canberra at 9.9 years have the shortest deposit timelines after Darwin's 7.5 years. Hobart's modelled loan payment of $4,721 a month is the lowest of any capital in dollar terms, but household income of $93,538 means the payment still takes 60.6% of monthly pay.
Most affordable cities at a glance
Darwin
Lowest on all three measures. An established house costs 5.60× yearly income, modelled payments take 42.8% of pay, and the deposit takes 7.5 years to save.
Melbourne
The shortest deposit timeline after Darwin at 9.8 years. Modelled payments take 56.4% of pay, the lowest share of any capital except Darwin.
Canberra
Highest typical household income of any capital city at $143,947/yr keeps modelled payments at 57.0% of pay and the timeline at 9.9 years, with a typical established house price of $1,071,300.
Hobart
The lowest modelled monthly payment in dollar terms ($4,721/month), though on household income of $93,538 it still takes 60.6% of monthly pay.
Section 05Least affordable
Which Australian capital city is least affordable?
Sydney records the highest figure on all three measures: a price-to-income ratio of 11.79, a modelled repayment share of 90.2%, and a 15.7-year deposit timeline. Adelaide ranks second on each, even though its typical established house price of $980,000 sits below Perth's $1,000,000, the difference comes down to Adelaide's lower household income.
2.1×
Sydney's deposit timeline runs 2.1 times Darwin's
Sydney's established house costs 11.79 times local income compared with Darwin's 5.60, a ratio 2.1 times as high. The deposit takes 15.7 years compared with 7.5, a gap of 8.2 years. Modelled loan payments in Sydney of $9,474 a month run 1.98 times Darwin's $4,785 a month, a difference of $4,689 a month, while Darwin households earn $8,007 more per year.
Section 06City comparison
Capital city affordability measures compared
Across the three measures, the same order holds: Sydney ranks least affordable and Darwin ranks most affordable, with the deposit timeline spanning 7.5 to 15.7 years, the price-to-income ratio ranging from 5.60 to 11.79, and the modelled repayment share ranging from 42.8% to 90.2%. Cities below are ordered from least to most affordable by deposit timeline; red marks the three least affordable cities on this measure, while green marks the two most affordable.
Affordability across all three measures, Australian capital cities, 2026
| City | Established house price | 20% deposit | Annual saving | Years to save | Price/income | Share of monthly pay |
|---|---|---|---|---|---|---|
| Sydney | $1,485,000 | $297,000 | $18,899/yr | 15.7 yrs | 11.79× | 90.2% |
| Adelaide | $980,000 | $196,000 | $14,085/yr | 13.9 yrs | 10.44× | 79.9% |
| Brisbane | $1,150,000 | $230,000 | $16,824/yr | 13.7 yrs | 10.25× | 78.5% |
| Perth | $1,000,000 | $200,000 | $16,970/yr | 11.8 yrs | 8.84× | 67.7% |
| Hobart | $740,000 | $148,000 | $14,031/yr | 10.5 yrs | 7.91× | 60.6% |
| Canberra | $1,071,300 | $214,260 | $21,592/yr | 9.9 yrs | 7.44× | 57.0% |
| Melbourne | $850,000 | $170,000 | $17,297/yr | 9.8 yrs | 7.37× | 56.4% |
| Darwin | $750,000 | $150,000 | $20,100/yr | 7.5 yrs | 5.60× | 42.8% |
Years to save a 20% deposit, city comparison map
Box size is proportional to the number of years; colour bands group the timelines.
Under 10 yrs10–12 yrs12–14 yrs14+ yrs
Select a city from the chart to see its key figures
Section 07Why cities differ
Why do affordability gaps differ between capital cities?
Household income, not price, is what separates the closest-priced capitals. Adelaide and Perth differ by just $20,000 on price, yet land at very different price-to-income ratios, at 10.44 compared with 8.84, because Perth's typical household income runs well ahead of Adelaide's. The same pattern runs through the wider table: the cities that rank as most affordable in this comparison tend to pair moderate prices with relatively high incomes, rather than simply having the cheapest houses.
Darwin also ranks most affordably because it combines a typical established house price of $750,000 with household income of $133,999, the second-highest of any capital after Canberra and above Sydney, Melbourne, Brisbane, Perth, Adelaide and Hobart. Sydney sits at the other end of the table, with a typical established house price equal to 11.79 times yearly household income.
What this comparison can and cannot show
These figures show how established house prices compare to incomes. They do not prove what caused the gaps. Interest rates, government policies, the number of homes being built, and how many people are moving to each city all play a part, and these things affect each other in ways that are difficult to separate out.
Section 08Regional areas
Are regional areas more affordable than capital cities?
Capital city established house prices in this data span $745,000, from $740,000 in Hobart to $1,485,000 in Sydney. Regional towns fall outside this capital-city comparison, and a lower regional price tag does not by itself settle whether an area is more affordable, because local incomes and access to services also vary.
- Regional towns sit outside this dataset, so this comparison cannot rank them against the capitals. The ABS source also includes rest-of-state figures, but those figures combine many different regional markets and are not used in this capital-city ranking.
- Regional areas can also differ from capital cities in wages, job availability, and access to services like hospitals, schools, and public transport. These broader trade-offs vary by location and are not captured in a price-only comparison or in this article's data.
- Some regional areas, particularly those close to a capital city or in a mining area, may have recorded price rises in recent years and may not be as affordable as a low headline price suggests.
- A broader affordability comparison includes both typical local established house prices and typical local income. This can give a clearer measure than prices alone.
General information only
This article is based on publicly available data from the ABS, AIHW, RBA and APRA. It is general information only and does not constitute financial, legal or lending advice. The figures are indicative comparisons and may not reflect an individual buyer's borrowing capacity, loan terms, deposit position, income, expenses or personal financial circumstances.
References
- 1.ABS: 2021 Census QuickStats: 2021 median weekly household income by Greater Capital City Statistical Area.
- 2.ABS: Wage Price Index, March quarter 2026: Wage growth applied to the 2021 Census household income figures.
- 3.ABS: Total Value of Dwellings, March quarter 2026: March quarter 2026 median established house transfer prices by capital city.
- 4.AIHW: Housing affordability: 30% housing-cost benchmark.
- 5.RBA: Lenders' Interest Rates, Table F6: April 2026 owner-occupier principal-and-interest new-loan rate.
- 6.APRA: Macroprudential policy settings: 3 percentage point mortgage serviceability buffer.
- 7.Methodology. All figures are indicative comparisons based on publicly available data. They are designed to compare housing affordability across Australian capital cities and are not a prediction of what any individual buyer may experience.
- Household income: Typical household income for each capital city is based on the 2021 Census median weekly household income by Greater Capital City Statistical Area, annualised and updated to March quarter 2026 using the ABS Wage Price Index. This provides a wage-adjusted income proxy, not a direct 2026 household-income measurement.
- Established house prices: Typical capital city prices are the ABS median established house transfer prices from ABS Total Value of Dwellings, March Quarter 2026, Table 2: Median price and number of transfers, capital city and rest of state. These cover established houses and exclude attached dwellings such as units and apartments. March quarter 2026 figures are preliminary and may be revised by the ABS.
- Loan payments: Repayments are modelled on borrowing 80% of the typical established house price and repaying it over 30 years at 8.9% per year. The 8.9% rate is a serviceability-style assumption, based on the April 2026 RBA owner-occupier principal-and-interest new-loan rate of 5.92%, rounded to about 5.9%, plus APRA's 3 percentage point serviceability buffer. It is a stress-test comparison, not a live loan quote.
- Saving a deposit: Deposit-saving timelines are based on a 20% deposit and assume 15% of household income is saved each year, starting from zero, with no interest earned on savings.
- Housing-cost benchmark: The article uses the common 30% housing-cost benchmark, most often applied to lower-income households, to compare repayments with household income. It is used only as a comparison threshold and does not assess individual borrowing capacity or personal financial circumstances.
Data Snapshots
