Source: Sydney Morning Herald, 8 December 2017.
The RBA finds 85% of apartments and 93% of homes beyond the reach of typical first time Sydney buyers.
A typical Sydney first home buyer can afford just one in every 10 properties in the city and must move an average of 31km from the CBD to buy an apartment and 56km from the CBD to buy a detached home, a Reserve Bank study has found.
A new housing accessibility index developed by the bank shows the purchasing capacity of the “median potential first home buyer” in Sydney last year was $474,000.
That puts 85% of apartments and 93% of detached homes in the city beyond their reach following a 5 year boom in Sydney property prices.
The Reserve’s investigation of affordability for first home buyers found the average distance to the CBD of homes accessible to the median potential first home buyer in Sydney has grown “consistently over the past decade for both houses and apartments.”
Apartments affordable to the median potential first home buyer are now an average of 11km further from the CBD than they were a decade ago. Separate houses affordable for the median potential first home buyer are now an average of 12km further from the CBD than they were a decade ago.
Also, the size of housing affordable to first-time buyers has declined considerably.
“In all capital cities, the average number of bedrooms in affordable housing has declined over the past 20 years, most notably in Sydney,” the study found.
“This partly reflects apartments being smaller and an increased share of affordable homes, although the average number of bedrooms for affordable houses has also declined over time.”
Meanwhile, the average number of bedrooms in the housing stock assessed as being out of reach of first home buyers has increased.
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