How much do you need to earn to afford a house or unit in your capital city?
Find out how much you need to earn to afford a house or unit in your capital city without suffering mortgage stress.

Find out how much you need to earn to afford a house or unit in your capital city without suffering mortgage stress.
Key points:
- Canstar’s analysis shows buyers with a 20% deposit need a combined annual income of $121,881 to $299,060 to afford a house in one of the country’s capital cities while avoiding mortgage stress.
- To comfortably afford a unit in one of the eight capital cities with a 20% deposit, a combined annual salary of $76,586 to $177,699 is needed.
- In five of the eight capital cities, it would take more than 12 years to save a 20% deposit, but a dual-income couple could reduce this time by nearly half.
We take a look at how much you need to earn to afford a house or unit in each capital city without being under ‘mortgage stress’. Keep in mind that this is based on current interest rates. If rates increase again, which some experts are predicting they will, you will need some more wiggle room.
National dwelling values rose 31.7% between April 2020 and April 2022, according to CoreLogic. However, the rapid rise in the cash rate since then has diminished the upward trajectory. Dwelling values across the country have risen by only 2.8% from April 2022 through to the end of April 2024.
Despite the recent volatility, CoreLogic figures show that home values are still 27.2% higher than where they were in March 2020 at the onset of the pandemic. Add in the fact that the cash rate has increased from 0.10% to 4.35% in just two years, and it’s no surprise that affordability still remains an issue.
How much do you need to earn to afford a house in your capital city?
Canstar crunched the numbers to reveal how much you need to earn to be able to afford the repayments on a house in each capital city without suffering mortgage stress. This is based on the median house value and assumes you have a 20% deposit and that your annual mortgage repayments make up 29.99% of before-tax income.
The numbers show that Sydneysiders need to earn the most – $299,060 – to be able to comfortably afford the repayments on a house based on the median value.
Those who want to buy a home in Darwin still need to earn more than $121,888 to avoid mortgage stress, while anyone wanting to buy in Hobart will need to earn over $145,609. Perth buyers need a combined income of $158,613 – roughly half of what those in Sydney need.
Annual income needed to afford a house in each capital city
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Capital City |
Median property value |
Deposit (20%) |
Monthly repayment |
Average annual before-tax income |
Before-tax income required to avoid mortgage stress |
Difference |
---|---|---|---|---|---|---|
Sydney | $1,421,413 | $284,283 | $7,474 | $98,353 | $299,060 | -$200,707 |
Melbourne | $941,698 | $188,340 | $4,952 | $96,621 | $198,146 | -$101,525 |
Brisbane | $920,046 | $184,009 | $4,838 | $95,924 | $193,585 | -$97,661 |
Adelaide | $800,648 | $160,130 | $4,210 | $90,241 | $168,456 | -$78,215 |
Perth | $753,947 | $150,789 | $3,964 | $109,600 | $158,613 | -$49,013 |
Hobart | $692,004 | $138,401 | $3,639 | $86,840 | $145,609 | -$58,769 |
Darwin | $579,229 | $115,846 | $3,046 | $95,306 | $121,881 | -$26,575 |
Canberra | $972,699 | $194,540 | $5,115 | $108,555 | $204,668 | -$96,113 |
Combined Capitals |
$966,570 | $193,314 | $5,082 | $98,218 | $203,348 | -$105,130 |
Source: www.canstar.com.au. Prepared on 21/05/2024. Median Property Value based on the CoreLogic Home Value Index as at 30 April 2024 statistics. Monthly repayment assumes principal & interest repayments made over 30 years, based on the average owner occupier variable rate of 6.88% (based on loans available for $600,000, 80% LVR and principal & interest repayments in Canstar’s database; excludes introductory and first home buyer only home loans). Average Gross Income based on ABS Average Weekly Earnings November 2023 (full-time, adult, ordinary time earnings).
How much do you need to earn to afford a unit in your capital city?
The table below shows how much you need to earn to be able to afford the repayments on a unit in each capital city without suffering mortgage stress. This is based on the median unit value and assumes you have a 20% deposit and that your annual mortgage repayments make up 29.99% of before-tax income.
Once again, those living in Sydney need to earn the most ($177,699) to avoid mortgage stress while those in Darwin need to earn the least ($76,586).
Annual income needed to afford a unit in each capital city
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Capital City |
Median property value |
Deposit (20%) |
Monthly repayment |
Average annual before-tax income |
Before-tax income required to avoid mortgage stress |
Difference |
---|---|---|---|---|---|---|
Sydney | $844,659 | $168,932 | $4,441 | $98,353 | $177,699 | -$79,346 |
Melbourne | $613,023 | $122,605 | $3,223 | $96,621 | $128,963 | -$32,342 |
Brisbane | $600,215 | $120,043 | $3,156 | $95,924 | $126,282 | -$30,358 |
Adelaide | $514,369 | $102,874 | $2,705 | $90,241 | $108,236 | -$17,995 |
Perth | $508,988 | $101,798 | $2,676 | $109,600 | $107,076 | $2,524 |
Hobart | $528,625 | $105,725 | $2,780 | $86,840 | $111,237 | -$24,397 |
Darwin | $364,075 | $72,815 | $1,914 | $95,306 | $76,586 | $18,720 |
Canberra | $592,879 | $118,576 | $3,117 | $108,555 | $124,722 | -$16,167 |
Combined Capitals |
$664,596 | $132,919 | $3,495 | $98,218 | $139,847 | -$41,629 |
Source: www.canstar.com.au. Prepared on 21/05/2024. Median Property Value based on the CoreLogic Home Value Index as at 30 April 2024 statistics. Monthly repayment assumes principal & interest repayments made over 30 years, based on the average owner occupier variable rate of 6.88% (based on loans available for $600,000, 80% LVR and principal & interest repayments in Canstar’s database; excludes introductory and first home buyer only home loans). Average Gross Income based on ABS Average Weekly Earnings November 2023 (full-time, adult, ordinary time earnings).
How long will it take you to save a 20% deposit for a house in your capital city?
One of the hardest parts of getting your foot on the property ladder is saving the deposit. The Canstar research team calculated how long it would take to save a 20% deposit in each capital city. This is based on the median house value as at February 2023. It assumes you earn the average weekly earnings for each respective state and that you save 20% of your after-tax income.
As the table shows, it would take you more than 12 years in five of the eight capital cities to save a 20% deposit, but if there were two of you that time could be shaved down a fair bit. In Melbourne for example, it would take someone on a single income 14 years and three months, but if they pooled their savings with someone else, they could potentially reach their goal in six years and nine months.
Time to save a 20% deposit for a house in each capital city
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Capital City |
Median property value |
Estimated time to save | |
---|---|---|---|
Single income | Dual income | ||
Sydney | $1,421,413 | 22 yrs & 5 mths | 10 yrs & 4 mths |
Melbourne | $941,698 | 14 yrs & 3 mths | 6 yrs & 9 mths |
Brisbane | $920,046 | 13 yrs & 11 mths | 6 yrs & 8 mths |
Adelaide | $800,648 | 12 yrs & 8 mths | 6 yrs & 1 mth |
Perth | $753,947 | 9 yrs & 11 mths | 4 yrs & 10 mths |
Hobart | $692,004 | 11 yrs & 3 mths | 5 yrs & 5 mths |
Darwin | $579,229 | 8 yrs & 6 mths | 4 yrs & 2 mths |
Canberra | $972,699 | 13 yrs & 3 mths | 6 yrs & 4 mths |
Combined Capitals |
$841,328 | 14 yrs & 5 mths | 6 yrs & 10 mths |
Source: www.canstar.com.au. Prepared on 21/05/2024. Median Property Value based on the CoreLogic Home Value Index as at 30 April 2024 statistics. Estimated time taken to save a 20% deposit based on the following assumptions: Starting income based on the average weekly earnings for each respective state (ABS Average Weekly Earnings; November 2023; full-time adult ordinary time earnings), wage growth of 2.50% p.a., property price growth of 2.50% p.a., 20% of after-tax income deposited into a savings accounts with an interest rate of 2.04% (average bonus saver rate over the past 5 years, based on calculating average each month), and interest earnings at the relevant marginal tax rate (based on the 2022-23 financial year) plus the 2% Medicare Levy. For the dual income scenario, earnings are assumed deposited into a joint savings account.
How long will it take you to save a 20% deposit for a unit in your capital city?
Canstar worked out how long it would take to save a 20% deposit for a unit in each capital city. This is based on the median unit value as at April 2024. It assumes you earn the average weekly earnings for each respective state and that you save 20% of your after-tax income.
The table below shows that it ranges from five years and three months to 12 years and five months assuming a single income. You can get there faster if there are two of you saving.
Time to save a 20% deposit for a unit in each capital city
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Capital City |
Median property value |
Estimated time to save | |
---|---|---|---|
Single income | Dual income | ||
Sydney | $844,659 | 12 yrs & 5 mths | 6 yrs |
Melbourne | $613,023 | 8 yrs & 11 mths | 4 yrs & 4 mths |
Brisbane | $600,215 | 8 yrs & 10 mths | 4 yrs & 4 mths |
Adelaide | $514,369 | 7 yrs & 11 mths | 3 yrs & 11 mths |
Perth | $508,988 | 6 yrs & 7 mths | 3 yrs & 3 mths |
Hobart | $528,625 | 8 yrs & 5 mths | 4 yrs & 1 mth |
Darwin | $364,075 | 5 yrs & 3 mths | 2 yrs & 7 mths |
Canberra | $592,879 | 7 yrs & 9 mths | 3 yrs & 10 mths |
Combined Capitals |
$664,596 | 9 yrs & 7 mths | 4 yrs & 8 mths |
Source: www.canstar.com.au. Prepared on 21/05/2024. Median Property Value based on the CoreLogic Home Value Index as at 30 April 2024 statistics. Estimated time taken to save a 20% deposit based on the following assumptions: Starting income based on the average weekly earnings for each respective state (ABS Average Weekly Earnings; November 2023; full-time adult ordinary time earnings), wage growth of 2.50% p.a., property price growth of 2.50% p.a., 20% of after-tax income deposited into a savings accounts with an interest rate of 2.04% (average bonus saver rate over the past 5 years, based on calculating average each month), and interest earnings at the relevant marginal tax rate (based on the 2022-23 financial year) plus the 2% Medicare Levy. For the dual income scenario, earnings are assumed deposited into a joint savings account.
Compare Home Loans (First home buyer with a variable rate) with Canstar
If you’re currently considering a home loan, the comparison table below displays some of the variable rate home loans on our database with links to lenders’ websites that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by comparison rate (lowest-highest). Products shown are principal and interest home loans available for a loan amount of $500,000 in NSW with an LVR of 80% of the property value and that offer an offset account. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. Use Canstar’s home loans comparison selector to view a wider range of home loan products. Canstar may earn a fee for referrals.
The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
$3,000 when you refinance with a ME home loan. Minimum loan amounts and LVR restrictions apply. Offer available until further notice. See provider website for full details. Exclusions, terms and conditions apply.
Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular product. If you decide to apply for a home loan, you will deal directly with a financial institution, not with Canstar. Rates and product information should be confirmed with the relevant financial institution. Home Loans in the table include only products that are available for somebody borrowing 80% of the total loan amount. For product information, read our detailed disclosure, important notes and additional information. *Read the comparison rate warning. The results do not include all providers and may not compare all the features available to you.
Home Loan products displayed above that are not “Sponsored or Promoted” are sorted as referenced in the introductory text followed by Star Rating, then lowest Comparison Rate, then alphabetically by company. Canstar may receive a fee for referral of leads from these products.
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This article was reviewed by our Content Editor Alasdair Duncan before it was updated, as part of our fact-checking process.

The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Try our Home Loans comparison tool to instantly compare Canstar expert rated options.
The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.