Eight years wages needed to buy a Sydney home

It takes more than eight times the average annual income to buy an average Sydney home, according to Australians for Affordable Housing (AAH).

“Australian households are paying more than they can afford for housing, with over 740,000 renters and more than 380,000 mortgaged home owners reporting significant financial stress,” spokeswoman Sarah Toohey said.

The group is concerned that increased prices cause first-time buyers to stay in the rental market for longer, competing for properties and pushing up rental prices.

Since 2005, rents in Australian cities have risen at twice the rate of inflation, according to the report. The report also found that 50 per cent of low-income home owners are in mortgage stress.

Source: Sydney Morning Herald