Key figures at a glance
12.12×
In Sydney, a typical home costs 12.12 times yearly household income, the highest figure of any Australian capital city.
5.35×
In Darwin, a typical home costs 5.35 times yearly household income, the lowest figure of any Australian capital city.
8 of 8
All eight capital cities have estimated home loan repayments above 30% of monthly household income.
16.2yrs
In Sydney, it takes 16.2 years to save a 20% deposit, based on putting aside 15% of household income each year. The same measure takes 7.1 years in Darwin.
This comparison covers Australia's eight capital cities only. The ABS publishes data at the capital city level, so other cities and towns across Australia are not included.
Section 01Home price vs income
How do home prices compare with income by capital city?
Housing affordability can be compared by looking at what homes cost relative to what local households earn. Dividing the typical home price by typical yearly household income gives a simple measure of how home prices compare across capital cities.
- In Sydney, a typical home costs 12.12 times yearly household income, the highest figure of any capital city.
- Darwin is the most affordable on this measure. A typical home there costs 5.35 times yearly household income, supported by lower home prices and higher local wages.
- Adelaide has the second-highest ratio at 10.20 times yearly household income, followed by Brisbane at 9.88, Perth at 8.47, Hobart at 8.07, Melbourne at 7.65 and Canberra at 7.30.
- Adelaide and Perth have almost the same home prices, at $950,000 and $951,000 respectively, but Adelaide households earn about $19,000 less per year. That income gap gives Adelaide a higher home price-to-income ratio.
- Canberra has the highest average household income of any capital at $142,842 a year, while its typical home price keeps the city at 7.30 times yearly household income.
How many times the typical yearly income a home costs, by city
Typical home price divided by typical yearly household income, 2025
In every capital city, a typical home costs at least 5.35 times yearly household income, with Sydney and Adelaide recording the highest ratios in this comparison.
Source: ABS Census of Population and Housing 2021, updated to 2025 using ABS Wage Price Index. Home price data from ABS Total Value of Dwellings, December Quarter 2025.
Hardest city to buy in
12.12×
Sydney. If a typical household saved their entire yearly pay without spending a cent, it would take over 12 years just to cover the purchase price.
Easiest city to buy in
5.35×
Darwin. Lower home prices combined with higher-than-average local wages make it the most manageable capital city for home buyers.
Why Adelaide ranks less affordable than Perth
Adelaide and Perth have almost the same typical home price, at $950,000 and $951,000 respectively. However, Adelaide has a higher home price-to-income ratio because typical household income is lower. Perth households earn about $19,000 more per year than Adelaide households, which gives Perth a lower ratio on this measure.
Home price compared to annual income, all capital cities, 2025
| City | Typical home price | Typical annual household income | Years of income |
|---|---|---|---|
| Sydney | $1,515,000 | $125,024 | 12.12 |
| Adelaide | $950,000 | $93,181 | 10.20 |
| Brisbane | $1,100,000 | $111,300 | 9.88 |
| Perth | $951,000 | $112,263 | 8.47 |
| Hobart | $749,500 | $92,820 | 8.07 |
| Melbourne | $875,000 | $114,430 | 7.65 |
| Canberra | $1,042,500 | $142,842 | 7.30 |
| Darwin | $711,000 | $132,970 | 5.35 |
The 'Years of income' column shows how many years of total household pay a typical home costs in each city. Lower is more manageable. Income from 2021 Census, updated to 2025 using ABS Wage Price Index. Home prices from ABS Total Value of Dwellings, 2025.
Section 02Home loan payments vs income
How much of income goes to home loan payments by capital city?
In every Australian capital city, estimated home loan payments take up more than 30% of typical monthly household income, based on the repayment assumptions used in this article. In Australia, spending more than 30% of income on housing costs is widely used as a benchmark for housing financial strain. In Sydney, estimated repayments reach nearly 90% of typical monthly household income. Darwin sits at the other end of the scale at 39.5%, mainly because typical home prices are lower.
How much of monthly household income goes to home loan payments, by city
Based on borrowing 80% of the home's price and paying it back over 30 years at 8.5% per year
Every city in this data sits above the 30% housing-cost benchmark under the repayment assumptions used in this article.
Source: Repayments calculated on 80% of typical home price at 8.5% per year over 30 years. Income figures from the ABS 2021 Census, updated to 2025 using the ABS Wage Price Index.
89.6%
How much of a typical Sydney household income goes to home loan payments
On a typical Sydney home bought with a 20% upfront payment, monthly loan payments of $9,336 would take up 89.6% of the typical monthly household income of $10,419. Darwin has the lowest repayment-to-income share in this comparison, at 39.5%.
Monthly home loan payments vs income, all capital cities, 2025
| City | Amount borrowed | Monthly payment | Monthly pay | Share of pay | Above 30% benchmark? |
|---|---|---|---|---|---|
| Sydney | $1,212,000 | $9,336 | $10,419 | 89.6% | Yes |
| Adelaide | $760,000 | $5,855 | $7,765 | 75.4% | Yes |
| Brisbane | $880,000 | $6,779 | $9,275 | 73.1% | Yes |
| Perth | $760,800 | $5,861 | $9,355 | 62.6% | Yes |
| Hobart | $599,600 | $4,619 | $7,735 | 59.7% | Yes |
| Melbourne | $700,000 | $5,392 | $9,536 | 56.5% | Yes |
| Canberra | $834,000 | $6,425 | $11,903 | 54.0% | Yes |
| Darwin | $568,800 | $4,382 | $11,081 | 39.5% | Yes |
Spending more than 30% of income on housing costs is commonly used as a housing-cost benchmark. These figures reflect the cost of buying a typical home in 2025 with a new loan. Existing homeowners with older loans are likely paying considerably less. Payment estimates based on 80% loan at 8.5% per year over 30 years.
Repayments are estimates, 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 8.5% interest rate used here is a research assumption, so repayments may differ from rates available to borrowers at the time of purchase.
Section 03Saving a deposit
How long does it take to save a 20% deposit by city?
A 20% deposit takes 16 years to save in Sydney and 7 years in Darwin, based on a saving rate of 15% of typical yearly household income. The timeline varies significantly across Australia's capital cities, mainly because home prices and household incomes differ by location.
- In Sydney, a 20% deposit comes to $303,000, the largest of any capital. At a saving rate of 15% of typical yearly household income, the timeline is 16.2 years.
- In Darwin, the same deposit is $142,200, less than half of Sydney's figure, and it takes only 7.1 years to save.
- Adelaide (13.6 years) and Brisbane (13.2 years) take the second and third longest of any capital, despite having similar or lower home prices than cities with shorter timelines.
- Canberra has the highest typical household income of any capital city, which brings its timeline down to 9.7 years, even though the deposit there is $208,500.
- Melbourne, Hobart, and Perth sit close together, all between 10.2 and 11.3 years.
How many years to save a 20% deposit, by city
Assumes saving 15% of household income each year, with no money saved already
These figures are conservative: savings start from zero with no interest earned and no government assistance factored in. Six of the eight capital cities require more than 10 years.
Source: ABS 2021 Census income data, updated to 2025 using ABS Wage Price Index. Deposit = 20% of typical 2025 capital city home price from ABS Total Value of Dwellings.
Sydney deposit to save
$303,000
This is 20% of the typical $1,515,000 Sydney home price. At a saving rate of 15% of typical Sydney household income, or $18,754 a year, the timeline is 16.2 years.
Darwin deposit to save
$142,200
This is 20% of the typical $711,000 Darwin home price. At a saving rate of 15% of typical Darwin household income, or $19,945 a year, the timeline is 7.1 years.
How long to save a 20% deposit, all capital cities, 2025
| City | 20% deposit needed | Saved per year (15% of income) | Years to save |
|---|---|---|---|
| Sydney | $303,000 | $18,754 | 16.2 years |
| Adelaide | $190,000 | $13,977 | 13.6 years |
| Brisbane | $220,000 | $16,695 | 13.2 years |
| Perth | $190,200 | $16,839 | 11.3 years |
| Hobart | $149,900 | $13,923 | 10.8 years |
| Melbourne | $175,000 | $17,164 | 10.2 years |
| Canberra | $208,500 | $21,426 | 9.7 years |
| Darwin | $142,200 | $19,945 | 7.1 years |
Amount saved per year equals 15% of typical household income before tax. Adelaide has a smaller deposit target than Brisbane ($190,000 vs $220,000) but takes longer to save for (13.6 vs 13.2 years) because Adelaide households earn less and can put aside less each year.
Section 04Most affordable
Darwin has the lowest typical home price of any capital city
Darwin is the only capital city where all three affordability measures rank lowest: home price-to-income ratio, estimated mortgage repayments as a share of income, and time to save a 20% deposit.
Canberra and Melbourne follow on most measures. Hobart's loan payments look low in dollar terms, but lower local household income means repayments still take up a relatively large share of income.
Most affordable cities at a glance
Darwin
Lowest on all three measures. A home costs 5.35× yearly income, monthly payments take 39.5% of pay, and the deposit takes 7.1 years to save.
Canberra
Highest typical household income of any capital city at $142,842/yr keeps monthly payments at 54% of pay. That holds even though homes in Canberra cost over $1 million.
Melbourne
Monthly payments take up 56.5% of pay, and the deposit savings timeline is 10.2 years, the third shortest of any capital.
Hobart
The second-lowest monthly payment in dollar terms ($4,619/month) after Darwin, but low local incomes mean housing still takes a large share of pay.
Section 05Least affordable
Which Australian capital city is least affordable?
Sydney is least affordable on all three measures: home price-to-income ratio, estimated repayments as a share of income, and time to save a 20% deposit. Adelaide is second least affordable on all three measures, even though its typical home price is almost identical to Perth's. In this comparison, the difference is mainly driven by household income.
2.3×
Sydney's deposit timeline is 2.3 times longer than Darwin's
Sydney's home costs more than twice as much relative to local income as Darwin's (12.12 versus 5.35). The deposit takes 2.3 times longer to save (16.2 years versus 7.1 years). Monthly loan payments in Sydney ($9,336) are more than double Darwin's ($4,382), even though Darwin households earn more.
Section 06City comparison
Capital city affordability measures compared
The table below shows all three affordability measures for every capital city. Cities are ordered from least to most affordable by deposit saving timeline. Red shading indicates the three hardest cities to buy into; green indicates the two most affordable.
Capital city affordability: all three measures, 2025
| City | Home price | 20% deposit | Annual saving | Years to save | Home/income | Monthly pay |
|---|---|---|---|---|---|---|
| Sydney | $1,515,000 | $303,000 | $18,754/yr | 16.2 yrs | 12.12× | 89.6% |
| Adelaide | $950,000 | $190,000 | $13,977/yr | 13.6 yrs | 10.20× | 75.4% |
| Brisbane | $1,100,000 | $220,000 | $16,695/yr | 13.2 yrs | 9.88× | 73.1% |
| Perth | $951,000 | $190,200 | $16,839/yr | 11.3 yrs | 8.47× | 62.6% |
| Hobart | $749,500 | $149,900 | $13,923/yr | 10.8 yrs | 8.07× | 59.7% |
| Melbourne | $875,000 | $175,000 | $17,164/yr | 10.2 yrs | 7.65× | 56.5% |
| Canberra | $1,042,500 | $208,500 | $21,426/yr | 9.7 yrs | 7.30× | 54.0% |
| Darwin | $711,000 | $142,200 | $19,945/yr | 7.1 yrs | 5.35× | 39.5% |
Section 07Why cities differ
Why do affordability gaps differ between capital cities?
Adelaide and Perth show how income can change the affordability picture. Both cities have almost identical typical home prices, at $950,000 and $951,000 respectively. However, Perth has a lower home price-to-income ratio because typical household income is higher. Perth households earn about $19,000 more per year than Adelaide households, which lowers Perth's ratio on this measure.
Darwin also ranks most affordably because it combines the lowest typical home price of any capital city with higher typical household income than several larger capitals. Sydney sits at the other end of the table, with a typical home price equal to 12.12 times yearly household income.
What the data does not prove
These figures show how home 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?
Regional areas can look more affordable than capital cities on price alone, but a lower price tag does not always tell the full story.
- Capital city home prices in this data range from $711,000 in Darwin to $1,515,000 in Sydney. Many regional towns sit well below this range, although prices vary widely by location.
- Regional areas often have lower wages, fewer jobs, and less access to services like hospitals, schools, and public transport. These trade-offs do not show up in a price-only comparison.
- Some regional areas, particularly those close to a capital city or in a mining area, also saw significant price rises between 2020 and 2025 and may not be as affordable as they appear.
- A broader affordability comparison includes both typical local home prices and typical local income. This gives a clearer measure than home prices alone.
Section 09How the numbers were calculated
Methodology
General information only
This article is based on publicly available data from the ABS and AIHW. It is general information only and does not constitute financial, legal or lending advice. The figures are estimates and may not reflect an individual buyer's borrowing capacity, loan terms, deposit position or personal financial circumstances.
All figures are estimates 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 and updated to 2025 using ABS Wage Price Index data.
- Home prices: Typical capital city home prices are based on ABS Total Value of Dwellings, December Quarter 2025, Table 2: Median price and number of transfers, capital city and rest of state. Figures use December quarter 2025 median established house transfer prices for each capital city.
- Loan payments: Repayment estimates are based on borrowing 80% of the typical home price and repaying it over 30 years at 8.5% per year. The 8.5% rate is a research assumption and does not represent 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 to compare estimated repayments with household income. This benchmark does not assess individual borrowing capacity or personal financial circumstances.
References
- 1.Australian Bureau of Statistics (ABS), Income and work Census 2021: Typical weekly household income by capital city, used as the basis for 2025 income estimates.
- 2.ABS Wage Price Index Australia, Dec 2025: Official measure of wage growth. A factor of 1.1576 was applied to 2021 income figures to bring them up to 2025 levels.
- 3.ABS Total Value of Dwellings, Dec Quarter 2025: Table 2: Median price and number of transfers, capital city and rest of state. Used for December quarter 2025 median established house transfer prices by capital city.
- 4.Australian Institute of Health and Welfare (AIHW): Oct 2025: Definition of housing financial strain — spending more than 30% of income on housing costs.
Data Snapshots
