Queenslanders need to earn around $100,000 more a year to afford a typical home than before the pandemic boom, according to startling new analysis.

The staggering pay rise places Brisbane just behind Sydney in terms of the extra income required per household since Covid-19.

Canstar’s analysis shows the minimum annual household income necessary to avoid mortgage stress when purchasing at the median unit or house price.

An income of $171,862 was needed for a median-priced house in Greater Brisbane in May 2025, compared to $72,628 in March 2020 — a $99,234 increase.

For units, $120,490 was required today, up from $52,164 pre-pandemic.

Australian Bureau of Statistics figures put median weekly earnings in Queensland at $1,350 in August 2024, or $70,200 a year — about $140,400 per household.

The wage increase was only greater in Sydney, where households now need a massive $272,737, up $145,671 from 2020.

At a suburb level, Canstar’s research revealed nearly 50 Queensland locations where the difference in household income had ballooned by $200,000 or more.

Coastal and inner-city hotspots led, with buyers in Surfers Paradise needing a whopping $481,122 more per household.

Minyama, Sunshine Coast would require an income boost of $481,122, and $310,417 to buy in New Farm, Brisbane.

MORE NEWS

Motocross mansion named Australia’s hottest property

AFL legend’s side hustle flipping homes

Tradie’s colossal 5.5m find in Aus backyard

Canstar director of research Sally Tindall said the “astonishing” spike in income required to enter the market risked “shutting people out”.

“It creates this divide between those already in the market and those who are struggling to land a foot on the property ladder,” Ms Tindall said.

“Fundamentally, the issue facing first-home buyers across the country is that prices are too high and their wages can’t keep up.”

Insufficient housing supply and the equity available to upgraders were key factors behind rising prices.

“It’s not an even playing field,” she said.

“Very few people have had the kind of pay rises needed to keep pace with the market. For most people, the only way they’ve kept up is because they already own property.”

Melinda Jennison, of Streamline Property Buyers, said strict lending criteria was compounding affordability challenges for first-home buyers.

“Rapid price growth across Brisbane, and many regional areas across Queensland, has pushed entry-level homes out of reach for many first-home buyers,” Ms Jennison said.

“Strict lending criteria [is] making it harder to qualify for loans due to the 3 per cent serviceability buffers that are in place, despite the fact that interest rates have declined in recent months.

“On top of this, limited housing supply and strong interstate migration continues to place pressure on the lower end of the market.”

PropTrack’s latest Home Price Index shows Brisbane’s median house price rose to $998,000 in May.

The city’s median dwelling price for houses and units combined rose 8.38 per cent annually to $889,000, with unit growth outpacing houses (11.42pc vs. 7.8pc).

Ray White chief economist Nerida Conisbee said the housing market had “exceeded all expectations”, with prices surging again since the start of 2025.

“The momentum that began with January’s recovery has intensified significantly following the Reserve Bank’s second interest rate cut in April, with two additional cuts anticipated before year’s end,” Ms Conisbee said.

She said house prices could be expected to remain high as new supply fell short of target, though rising unemployment could temper growth.

Herron Todd White director David Notley said Brisbane had lost its status as the more affordable of the nation’s three biggest cities.

“While Sydney prices are still an eye-watering option, our median has most definitely surpassed Melbourne,” Mr Notley said.

“I think it would make our forbears’ heads spin. Not too long ago, $1m was considered a deep-pocket buy, but no longer.”

He said properties still at that price point in the inner-city suburbs were either in need of repair, or in an undesirable location.

Ms Jennison said more families were exploring “bank of mum and dad” strategies, such as parents acting as guarantors to help children into home ownership sooner.

“It’s a powerful strategy, especially when rising prices are outpacing savings, but it does come with financial risk, so it’s important for families to get sound legal and financial advice before going down that path,” she said, also noting government incentives to reduce costs for first-home buyers.

While these approaches helped overcome the deposit hurdle, first-home buyers faced stiff competition.

“Quality properties priced under the $700,000 threshold, where first-home buyer incentives apply, are attracting multiple offers, often within days of hitting the market,” Ms Jennison said.

“In many cases, we’re seeing first-home buyers competing not only with each other, but also with investors and downsizers, which puts additional pressure on this price bracket.

“The challenge is twofold: limited supply and very strong demand.”

In addition to exploring available incentives and stamp duty concessions, being finance-ready by knowing your borrowing capacity and having pre-approval for a home loan in place were strategies to gain an edge in a fast-moving market, Ms Jennison said.

Canstar’s analysis assumed a 20 per cent deposit on a 30-year loan term, with mortgage stress defined as loan payments exceeding 33 per cent of household pre-tax income.

The post $100k pay rise: Brutal new hurdle for first-home buyers appeared first on realestate.com.au.

Aussies chasing the dream of home ownership now need to earn tens, if not hundreds of thousands more than they did five years ago.

Exclusive Canstar data reveals some Melbourne buyers would need nearly $100,000 extra a year to afford the same home they could have bought in 2020.

In the city’s most exclusive postcodes, such as Toorak and Balwyn, that figure more than doubles.

Covid-era interest-rate cuts gave buyers a brief advantage, but a harsh mix of climbing interest rates, escalating home prices and tighter borrowing conditions is now shutting the door on many would-be homebuyers.

RELATED: ‘Tough’ call as rents fall in 129 suburbs

Hawthorn star’s home tour has buyers buzzing

La Manna grocery empire scion lists Melbourne pad

The figures show a typical household in greater Melbourne must now earn almost $160,000 to afford a median-priced house – a $61,000 increase since 2020.

In blue-chip areas like Toorak, Brighton and Malvern, the income jump is even more dramatic.

Even assuming a 20 per cent deposit, buyers now need to earn hundreds of thousands more.

In Toorak, where the median house price is $3.85m, households must earn over $900,000 a year, $290,000 more than in 2020.

In Brighton East, that figure is $490,000, up by more than $200,000.

Malvern buyers now need over $700,000, compared to just over $500,000 in 2020.

Even once-accessible areas like Ferntree Gully have seen a $66,000 jump in required income, pushing the new threshold above $162,000.

In Melbourne’s middle ring, affordability is also slipping.

Households now need nearly $280,000 in Bentleigh East, close to $260,000 in Box Hill South, and more than $312,000 in Glen Waverley.

Canstar research director Sally Tindall said the data laid bare a growing wealth divide.

“It’s astonishing to see just what kind of income is now needed to get a foot on the property ladder,” Ms Tindall said.

“For most, the only way they’ve kept up is by already owning property.”

Ms Tindall said intergenerational wealth was increasingly critical.

“Families with equity are passing that on – the Bank of Mum and Dad is more essential than ever,” she said.

“Without it, many first-home buyers are stuck.”

Melbourne buyers’ advocate Cate Bakos agreed.

“We’re seeing more guarantee-backed loans, gifted deposits, and early inheritances,” Ms Bakos said.

“It’s not just financial – it’s emotional.

“Without that lifeline, many would be locked out.”

Ms Bakos said clients were now being forced to compromise on suburb, size or property type.

“The hardest pill to swallow is usually the location,” she said.

“People realise the dream suburb they grew up in is now out of reach.”

“Units, offer a way in, even if it’s not the dream home.”

Independent economist Cameron Kusher said rising prices – not wages – were driving the surge in income requirements.

“Prices in Melbourne are up nearly 13 per cent since 2020,” Mr Kusher said.

“Borrowing power has dropped while prices have gone up. It’s a painful combination.”

Mr Kusher said prestige areas like Malvern and Armadale had always been tough for average wage earners, but they’re now even more exclusive.

“These buyers aren’t typical salaried workers – they’ve got portfolios, businesses, family support, this isn’t a market most households can break into.”

Even in outer areas, affordability is slipping.

Required incomes in growth corridors have surged, up to $162,000 in parts of the east, and rising steadily across the north and west.

More attainable options include Melton at just under $110,000, Wyndham Vale at $120,000, Craigieburn at $125,000, and Pakenham at $130,000.

Zippy Financial principal broker Louisa Sanghera said more buyers were accepting smaller deposits and paying lenders mortgage insurance to get in sooner.

“Waiting for a 20 per cent deposit isn’t realistic anymore,” she said. “If they wait, the market moves on without them.”

Ms Sanghera said even strong earners were hitting serviceability roadblocks.

“Banks are stress-testing at nine per cent,” she said.

“Add rising living costs, and many buyers can’t borrow what they’d hoped.”

While prices have softened slightly in some pockets, Mr Kusher warned the crisis isn’t easing.

“Rate cuts might help – but they can also drive prices higher,” he said.

“Until we significantly boost housing supply, this problem won’t go away.”

Top 10 Melbourne suburbs – Highest 2025 incomes needed

Source: Canstar

Top 10 Melbourne suburbs – Lowest 2025 incomes needed

Source: Canstar

---

Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.

MORE: Block star reveals mistake that devalue homes

$250 a day: Melb market ‘on like Donkey Kong’

Revealed: Melb hot spots for young buyers

david.bonaddio@news.com.au

The post Melbourne: Home ownership dreams fading as prices outpace incomes by $100,000 appeared first on realestate.com.au.

The level of household income needed to comfortably afford to break in to the property market in Geelong has risen over the past five years despite home prices remaining in the doldrums.

Exclusive Canstar research reveals how much wages have failed to keep pace with the property market in the five years since the start of the pandemic.

More tellingly, it reveals how much outside of actual home prices impacts people’s ability to break in to the market.

RELATED: Buyers to unlock value in historic Newtown property

Geelong mansion linked to Melb Cup hits market

Buyer to breathe new life into cute Geelong West cottage

The figures show the level of household income to buy in a suburb of Geelong and pay less than 30 per cent on mortgage repayments has risen between about $40,000 to almost $140,000, depending on the suburb you buy in.

Four suburbs require an income of less than $100,000 – Norlane, Corio, Thomson and Whittington.

But the amount required has climbed between $37,000 and $44,000 in the past five years.

A median priced house in Armstrong Creek requires a $121,000 household income, a $51,000 increase, while a similar rise pushes the annual wage to buy in Belmont to $130,000.

A typical household income required to buy in Geelong West rose $66,000 to $158,000.

But the biggest rise was in Manifold Heights, where the median house price has reached $1.26m off the back of a sharp rise this year.

A household now needs a $235,000 income to comfortably afford to buy in this high-end suburb.

Canstar director of research Sally Tindall said the study showed the widening generational wealth gap.

“It is astonishing to see just what kind of income is required to get a foot on the property ladder these days,” Ms Tindall said.

“My concern is that this is shutting people out. It creates this divide between those already in the property market and those that are struggling to land a foot on the property ladder.

“What we are seeing anecdotally is that those families who have property are passing down the wealth they have created through home ownership down generations, further deepening that divide,” Ms Tindall said.

“The Bank of Mum and Dad is becoming more of a thing.”

At $720,000, Geelong’s median house price is 23 per cent higher than it was in 2020, even though it’s 9 per cent lower than three years ago.

Part of what was fuelling the incredible rise in property prices was the burgeoning amount of equity upgraders had behind them to channel into their next purchases, Ms Tindall said.

“Very few people have had the kind of pay rises needed to keep pace with the market. For most people, the only way they’ve kept up is because they already own property. Success breeds success.”

The problem for first-home buyers was that getting a foot on the first rung of the property ladder was becoming more challenging, robbing them of the chance to also benefit from future equity gains, she said.

“Fundamentally, the issue facing first-home buyers across the country is that prices are too high and their wages can’t keep up.

“There are a range of complex reasons we have this problem, but one of the primary factors is that we don’t have enough housing supply and we are not building enough to satisfy demand.”

Zippy Financial principal broker Louisa Sanghera said more buyers were amassing smaller deposits and paying lenders mortgage insurance to get in sooner.

“Waiting for a 20 per cent deposit isn’t realistic anymore,” she said. “If they wait, the market moves on without them.”

Ms Sanghera said even strong earners were hitting serviceability roadblocks.

“Banks are stress-testing at nine per cent,” she said.

“Add rising living costs, and many buyers can’t borrow what they’d hoped.”

Have your wages kept pace with post-Covid growth

Have your wages kept pace with post-Covid growth

Source: Canstar

The post Have your wages kept pace with post-Covid growth in Geelong appeared first on realestate.com.au.

Welcome back to Tech Pulse — a new weekly series rounding up the latest in technology, including tools, integrations and trends impacting mortgage and real estate.

Here’s what happened this week:

Robert Reffkin touts Compass’s AI platform, agent advocacy efforts

Compass is preparing to launch a new AI platform designed to automate tasks, find opportunities and give agents real-time support through voice or text. CEO Robert Reffkin previewed features like instant tour creation, comparative market analysis drafting, calendar integration and proactive client engagement.

Blue Sage Solutions adds rent payment data to Freddie Mac mortgage assessments

Blue Sage Solutions now lets lenders factor rent payments into mortgage decisions via Freddie Mac’s updated credit tool — an effort aimed at expanding homeownership access for renters with limited credit history.

FHA begins implementing multifactor authentication on Catalyst platform

The U.S. Department of Housing and Urban Development is rolling out phishing-resistant multifactor authentication for all Federal Housing Administration Catalyst users — with a July 28 deadline for adoption. The move aims to boost security, reduce credential sharing and protect sensitive data from cyber threats. Users are urged to act now or risk losing access to the platform.

Prudent AI debuts non-QM underwriting tool

Prudent AI has launched what it calls the first upfront automated underwriting system for non-QM loans, giving lenders early insight into loan viability. The tool applies investor-specific guidelines at submission — aiming to streamline operations, reduce exceptions, and support borrowers with nontraditional income or credit profiles.

Zillow vs. Homes.com: Experts speak on contrasts, agent benefits

Zillow and Homes.com are taking different approaches in the race for digital real estate dominance. While Zillow routes leads to Premier Agents, Homes.com gives them directly to listing agents. Industry experts say the contrast reflects deeper philosophical divides around agent control, consumer experience and how listings should be marketed.

Clear Capital integrates appraisal reviews with ICE

Clear Capital has integrated its automated appraisal review platform — ClearCollateral Review — with ICE Mortgage Technology’s Encompass Partner Connect. The move allows lenders to access review tools directly in their loan origination systems, aiming to streamline workflows, reduce risk and scale operations without the need for custom technical setup.

Newrez hires former Rocket CIO Brian Woodring

Newrez has appointed Brian Woodring as chief information officer. The former Rocket Mortgage executive will oversee technology strategy, including AI, digital products and IT infrastructure. His hiring follows other leadership changes at Newrez — including a new chief financial officer and regulatory head — as the lender focuses on platform growth and improvements to loan origination and servicing.

Goby Homes launches property transaction platform, founder honored by NAR

Goby Homes has launched a new platform to improve transparency and reduce cybersecurity risks in real estate transactions. Announced at the 2025 National Association of Realtors (NAR) Legislative Meetings, the rollout coincides with founder Terrence Nickelson being named NAR’s iOi Innovator of the Year for his tech-driven approach to reducing deal fallout and improving communication.

Partner Real Estate launches instant offers platform

Partner Real Estate has launched the Instant Offers Exchange, a platform that delivers multiple cash offers to sellers within minutes — with no obligation to accept. Designed to boost agent leverage and client flexibility, IOX aims to streamline sales and provide more options without showings, staging or upfront fees.