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A decade ago, a home buyer needed a deposit of $154,600 to buy a median-priced house in Sydney, data from the Australia Institute’s chief economist Greg Jericho showed.
If someone earning the average full-time male wage had saved 15 per cent of every pay packet in the ten years since, they’d have amassed $126,096.
That leaves them well short of their original goal – and even further short of what they need now.
Jericho’s numbers showed that the median Sydney housing deposit was now $281,500 – meaning that after 10 years trying to save $154,600, the hypothetical home-buyer would still need to save even more ($155,404).
It was a similar story around the country, though only Sydney prices had been so inflated.
If the same hypothetical homebuyer had aimed at the Melbourne market, they would be $42,059 short.
Brisbane ($58,699 short), Adelaide ($52,392 short), Canberra ($62,764 short), Perth ($19,873 short), and Hobart ($27,683 short) would also have to scrape up more.
Only in Darwin would they manage to have reached their deposit goal, in 2024.
“The reality is that for many people with ‘a good job that pays good money’ the possibility of owning a home is out of reach without help either from a partner who also has a good job or the Bank of Mum and Dad,” Jericho said.
“Remember, this data is based on the average full-time male wage. For those earning less, like teachers, nurses and mechanics – or anyone on the average full-time female wage – home ownership is more of an impossible dream than a great Australian dream.
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He said housing affordability needed to be “front and centre” of the upcoming federal election.
“25 years of the tax system incentivising housing speculation through the 50 per cent capital gains discount combined with negative gearing has left Australia with a housing affordability crisis,” Jericho said.
“The 50 per cent discount and negative gearing now cost around $12bn a year with $7.2bn going to the richest 10 per cent.
“After 25 years, we need to stop doing what isn’t working and start fixing things.”
