The gap between the income required to buy into many housing markets in Brisbane and what Australians actually earn is widening.
House hunters earning the country’s average wage are now priced out of the Brisbane market, startling new figures reveal.
Research by comparison site Canstar reveals if the Reserve Bank raises rates at its meeting next week, or even if they do so in May, more buyers will be forced outside of the River City, unable to service soaring mortgage repayments and huge property price jumps.
House hunters earning the country’s average wage are now priced out of the Brisbane market.
Australian Bureau of Statistics data shows the average weekly wage is $1,562.40, or $81,244.80 annually while the average full-time employee is on $2,051.10 a week, or $106,657.20 annually.
But in Brisbane, a buyer must earn $141,000 a year to buy in Rocklea, $151,000 to get into Fitzgibbon or Acacia Ridge and $164,000 for Zillmere.
For blue chip suburbs, buyers need to earn $246,000 for Greenslopes, $251,000 for Enoggera, $355,000 for Wilston, and $386,000 for Robertson.
Canstar.com.au data insights director Sally Tindall. Picture: supplied.
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“This research confirms a brutal reality — that the great Australian dream of owning your own home has officially decoupled from the average Australian wage in many locations,” said Sally Tindall, Canstar.com.au’s data insights director.
“The gap between the income required to buy into many housing markets and what Australians actually earn is widening.”
Even in the once affordable Logan suburbs of Woodridge and Springwood, a buyer will need to earn $132,000 and $174,000, respectively.
11 Raider Place, Sunnybank Hills.
The figures are based on a five per cent deposit against the current 3.85 per cent cash rate.
“Interest rate hikes have lifted the income needed to service a loan, while rising property prices have increased the size of the loan required in the first place,” Ms Tindall said.
“Together, that’s a double hit. Salary growth, by comparison, has not been able to keep up for many people.”
On the other end of the scale, there are five suburbs in southeast Queensland where you need to earn more than half a million dollars to afford a house, led by Teneriffe, where the minimum income required is a staggering $759,000 — $23,000 in monthly loan repayments.
Outside of Brisbane, buyers can purchase with a lower salary — with many cheaper suburbs bordering the city providing an alternative route into the real estate market.
“There are suburbs that are significantly less expensive than others,” Ms Tindall said.
Outside of Brisbane, buyers can purchase with a lower salary.
In Moreton Bay, buyers need to earn $134,000 for Caboolture South, and $164,000 for North Lakes while in Ipswich, buyers need $132,000 for Raceview and $135,000 for Redbank Plains.
To get into Palm Beach on the Gold Coast, buyers need $330,000, while $161,000 will get you into Pimpama. On the Sunshine Coast, buyers need $214,000 for Maroochydore and $192,000 for Little Mountain.
The Reserve Bank’s next decision, due Tuesday, has the potential to lock out many home buyers and decrease what people can borrowers.
18 Fewings Street, Toowong.
“For the average income earner on a full-time wage, a standard 0.25 percentage point hike to the cash rate translates into a $12,000 drop in the maximum amount they can borrow from the bank,” Ms Tindall said.
“Not a deal breaker for most, in isolation, however, a series of hikes could put the goalposts out of reach for already stretched buyers.
“To add insult to injury, despite the February hike and the threat of further rises, property prices are expected to keep on climbing due to a lack of stock, increasing the squeeze on first home buyers.
She said demand continued to outstrip supply in the property market with buyers still competing for properties.
“At the end of the day, people need a place to live and here in Australia there’s not enough for everyone to rent and buy where people need it,” she said.
Experts are warning that many buyers will have to adjust their expectations or cut back on lifestyle spending to keep their home dream alive.
71 Wakefield Street, Sandgate.
Loan Market Ignite broker Stephanie Thomas, who operates in southeast Queensland, said she had noticed a shift in how buyers were getting into the market.
“I find buyers are acknowledging that while it’s their first home it’s not their forever home,” Ms Thomas said.
“My parents’ generation and even my generation was very focused on buying a house and staying their forever but that’s not the case now.
“Buyers are deciding to ‘rentvest’ and a lot of people are purchasing with a sibling or friends to make it more affordable.
“It’s almost pulling in resources to get into the market which is something great to tap into.”
Buyers are encouraged to look into cheaper suburbs to get into the property market.
Ms Thomas said the lack of stock and huge buyer demand would continue in Queensland this year despite a predicted rate rise.
“When you listen to the majority of banks the prediction — and I it feel too — is there may be another one or two rate rises we should expect and forecast for,” she said.
“In Australia the goal is to own your own home and that won’t go away.
“It’s just working out how to do it and knowing what support is available.”
21 Garfield Drive, Paddington
Ms Tindall advised buyers to look into cheaper suburbs to get into the property market with the research revealing “where there’s a will, there’s a way”.
“There are a huge range of variables that can impact exactly which markets and properties you’re locked out of and which ones you’re not,” she said.
“Buying with a decent deposit, can also make a huge difference as is buying with another person.
She said the outlook for 2026 was “completely up in the air” following events in the Middle East.
“While higher fuel costs are expected to push headline inflation higher, in the short term, the broader economic fallout could actually be a cooling effect, particularly if households see these rising costs as a signal to tighten their belts,” she said.
“The ultimate severity of this shift will be influenced by the duration of the conflict and the total reach of its impact.”
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