According to CoreLogic, the electorate of Bradfield, covering the North Sydney and Hornsby regions, ranks as Australia’s most unaffordable place to buy a home, with a dwelling value-to-income ratio of 16.5.
This means that households would need to spend more than 16 times their annual income to purchase a median-priced property.
CoreLogic data shows Bradfield has maintained its position as the most unaffordable electorate consistently since late 2018, and has ranked either first or second nationally since 2013.
The housing affordability crisis has become a key election issue, with CoreLogic’s four different measures of housing affordability all at or near record highs for unaffordability at the end of 2024.
Sydney has four of the top five most expensive electorates located in the city, while Regional NSW and Queensland each accounted for three electorates in the top 20.
The impact of the pandemic has dramatically reshaped regional affordability, with Richmond in northern NSW now ranking as the 5th most unaffordable electorate nationally, jumping from 21st position before the pandemic.
“Richmond, located in northern NSW and including high-profile coastal markets like Byron Bay, recorded a dwelling value to income ratio of 12.4, the highest of any regional market nationally,” executive research director of CoreLogic’s Asia–Pacific research division Tim Lawless said.
The rental market shows a different pattern of unaffordability, with regional markets suffering the most severe affordability challenges.
Regional Queensland and NSW dominate the list of rental unaffordability, accounting for 13 of the top 20 most expensive rental markets nationally.
Richmond in Northern NSW and McPherson on the Gold Coast top the rental unaffordability rankings, with median-income households needing to dedicate more than 45 per cent of their gross income to cover median rents.
“In reality, it is unlikely rental households would be able to dedicate this much of their income to pay rent,” Mr Lawless said.
“Instead, renters on the median income may be renting properties at the lower quartile of the market or forming larger group households in an effort to maximise the tenancy to cover their rental payments.”
Meanwhile, Adelaide has emerged as the capital city with the most unaffordable rental market, with the electorate of Hindmarsh ranking as the most expensive capital city electorate for renters.
Located in Adelaide’s western suburbs, rents in Hindmarsh have surged by almost 48 per cent over the past five years.
The most affordable electorates to buy are concentrated in Regional Queensland, outer Melbourne suburbs, and Regional NSW.
Darwin’s Solomon electorate ranks as the most affordable nationally, benefiting from housing values that remain 3.8 per cent below their peak from June 2014.
Housing diversity also plays a crucial role in affordability outcomes.
While Wentworth in Sydney is home to some of Australia’s most expensive suburbs, it ranks 12th for unaffordability, partly due to its higher housing density, with 69 per cent of dwellings classified as units compared to just 40 per cent in Bradfield.
“It’s a timely reminder about the affordability benefits that a diverse range of housing stock can provide,” Mr Lawless said.