Sydney is Australia’s largest city with its population swelling by 9.8% to 4.8 million in the five years to 2016, according to the 2016 census.
It’s also home to the most expensive housing in the country with the ABS reporting that the average home price in the city stood at $886,800 at the end of the first quarter this year, easily topping the national average of $669,700.
The first fact largely explains the latter, which, along with a period of under-building in the city, has seen the median house price more than double since the start of 2009, according to data released by CoreLogic.
It’s a big, expensive city when it comes to housing costs, be it for those looking to buy or rent.
The city has the highest median rent at $440 per week, while the median mortgage repayment stands at $2,167 per month, second only to Darwin at $2,200 per month.
And, based off the data contained in the 2016 census released by the ABS today, it appears that many households in the city are struggling to make ends meet.
According to research agency McCrindle, more than 20% of Sydneysiders are either facing housing affordability “stress”.
“The housing crisis is greatest in Australia’s largest city,” McCrindle says.
“8% of Sydneysiders face mortgage stress — paying more than 30% of their pre-tax income on their mortgage — and a further 14% face rental stress, paying more than 30% of their income to their landlord.
“Combined, 22% of Sydneysiders face significant housing affordability challenges.”
That’s more than one million people in Sydney who are currently facing some form of housing affordability stress, at least based on McCrindle’s criteria.
It’s becoming increasingly costly to live in Australia’s largest city, and, as this tweet from Alphabeta Advisors economist Justin Fabo ponders, it appears that may be persuading those living in the city to shift to less expensive parts of the country.
It shows net interstate migration between Australia’s states and territories on a rolling 12-month basis, simply capturing the number of people who arrived compared to those who left.
Net interstate migration says a lot. QLD picking up while NSW falling again (housing costs?). Vic still strong. WA adjusting fast. pic.twitter.com/f8e5LF0zwp
— Justin Fabo (@justinfabo) June 27, 2017
Out of all Australia’s states and territories, net interstate migration away from New South Wales is the greatest, seemingly contributing to population growth to the north and south, Victoria and Queensland.