Are houses cheap in Australia? By international standards, no, houses on average aren't cheap in Australia. The national median house price hovers around $750k, but can be significantly more or less depending on where you choose to buy.
The June 2022 quarter saw the median house price across the combined capitals fall -0.9% from last quarter, where median prices sat at $1,074,676 to $1,065,447. Despite this slight decrease, the national median price for a house is still 10.9% higher than this time last year.
If you look more closely at the results of the survey, they show that the median multiple of house prices to income for major cities is 7.7 times in Australia compared to 4.8 times in the UK and 4.2 times in the US. In Sydney, it is 11.8 times and in Melbourne, it is 9.7 times.
Historically, housing unaffordability in Sydney has been blamed on a couple of factors. One is that the housing supply in Sydney is simply not keeping up with the demand of a growing population. A lack of land release is also cited as driving up property prices in Australia's largest centre.
Housing Costs In Australia
Housing in Australia is much more expensive than the UK.
Gold Coast is one of the cheapest places to live in Australia (89th globally). It is known for its high-standard education and academia and its budget-friendly living.
Australia's top 10 cheapest suburbs 2022
Andamooka in South Australia takes the title of Australia's cheapest suburb, with a median house price of just $20,000. Western Australia and New South Wales both have three suburbs respectively in the top 10, while Queensland and South Australia have an equal two each.
So why is the cost-of-living in Australia so high? One of the major reasons is inflation. A measure for household inflation, the Consumer Price Index, or CPI, increased by 2.1% in the first quarter of this year and 5.1% annually, according to data compiled by the Australian Bureau of Statistics (ABS).
According to Numbeo, Australia ranks 14th for highest cost of living in the world. This places this warm nation higher on the list than the United States, United Kingdom and even Canada (at least when you exclude rent costs). If you do include rent costs, Australia drops down slightly to 15th.
For thousands of Australians, the risk of losing their home is only one pay slip away. The high cost of rental housing combined with the lack of affordable housing options, particularly for low income earners, can force many families and individuals out of their homes with no place to live.
The upsides of buying
Property is a safe investment in Australia, so the value of yours could probably increase. If you want to live somewhere else, you can rent your place out and have a tenant effectively cover your mortgage repayments for you while its value continues to climb over time.
Generally speaking, in Australia you're likely to find the cheapest houses in regional and rural locations, especially in Western Australia, Queensland and South Australia.
One reason it is so hard to get a home loan now is government policy changes impacting the banks. These changes were meant to steady the Australian financial system in the face of the pandemic and the current cost-of-living crisis but have carried with them unintended consequences.
The costs of buying versus building will be influenced by a number of factors, however, according to the most recent data available, the average cost to buy a dwelling in Australia is currently $738,321, while the average cost to build one is $1,738.63 per m².
Con: High Cost of Living
While the standard of living in Australia is high, so is the cost of living. In fact, Australia is often ranked as one of the most expensive countries in the world to live in. This is due to a number of factors, including the high cost of housing, food, and transportation.
According to the United Nations, Australia is the second-best country in the world to live, due to its excellent quality of life index. The UN establishes a qualification, also known as the Human Development Index, based on an annual survey of social progress and economic indexes of the 187 countries.
The average full salary in Australia is $77,135 per year or $39.56 per hour. Entry-level positions start at $59,463 per year, while most experienced workers make up to $130,000 per year.
One reason behind this large landmass being so desolate is the shortage of rainfall. More than two-third part of the country only receives less than 500 mm annual rain. This arid, uninhabitable part of Australia lies in the middle of the continent (the Outback), away from the coasts.
Australia performs well in many dimensions of well-being relative to other countries in the Better Life Index. Australia outperforms the average in income, jobs, education, health, environmental quality, social connections, civic engagement and life satisfaction. These assessments are based on available selected data.
You're rich! Australia is now home to 2.2 million millionaires, according to a new study. Half of all Australians in 2021 had more than $400,000 in wealth. It means we have the highest median wealth of all the countries studied.
Melbourne is considered by some to be the best city to live in Australia, and has even been ranked as the world's most livable city more than once. It's home to a thriving live music scene, late-night bars and laneways dotted with cafés and coffee shops.