Locations Where Houses Make More Money Than Their Owners
The Locations Where Houses Make More Money Than Their Owners
From April 2024 to April 2025, Perth’s median house price jumped by $95,022, rising from $812,482 to $907,504. That’s a bigger increase than many full-time annual salaries in the city.
In contrast, while Sydney and Melbourne also recorded price increases, the gains were more modest, meaning most workers still earned more at their jobs than their homes did in equity. Brisbane and Adelaide also posted strong gains, with property value growth close to matching the average personal income.
With interest rates expected to fall, some experts say we may see stronger growth return to the east coast markets. But whether those gains will again outpace wages remains to be seen.
Perth, however, remains a standout — not only is it in a property boom, but for many locals, their home is proving to be their highest earning asset.
That’s in contrast to the average annual income of $81,568, according to data from the Australian Bureau of Statistics.
On the east coast, the picture was quite different. In Melbourne, house prices increased by just $13,805 over the year, while the average yearly wage stood at $76,617.
Sydney’s house prices rose by $52,006 over the year, compared to average annual earnings of $78,512.
In Brisbane, house price gains were just $2,411 higher than wage income, while in Adelaide, the difference was only $227.
According to Ray White Group senior data analyst Atom Go Tian, the last time wages outpaced house prices was during the market slowdowns in 2023 and 2019.
Ray White chief economist Nerida Conisbee explained that Sydney and Melbourne have been more sensitive to interest rate increases compared to markets out west.
Affordability pressures in Sydney and Melbourne have held back price growth, with house price increases trailing wages—particularly in higher-priced suburbs.
“The top end of the market is definitely seeing a slowdown,” Conisbee said. “We normally think of people buying expensive houses not needing big mortgages, but some do, and interest rate rises now mean it’s harder to get finance.”
However, Perth’s housing market appeared to resist these challenges, with limited new housing supply driving stronger competition for available properties and keeping prices on an upward trajectory, she said.
She added that Perth’s market was further supported by its rebound following the mining boom and bust.
“There is a lack of houses in Perth because of the really big construction problems,” Conisbee said. “Construction costs have continued to increase … and there have been a lot of competing demands.
“There’s been a bit of catch up as well because for 10-15 years house prices fell in Perth, so prices have jumped to get back to where they should have been.”
Three years ago, during Sydney and Melbourne’s previous property boom, some affluent suburbs saw house prices soar by over $1 million—more than 10 times the average salary.
But that trend has since reversed, with Ray White research showing homeowners in wealthy areas like Victoria’s Toorak and South Yarra, and Sydney’s Balmain, are now more likely to out-earn their properties.
House price growth has also lagged behind wages in many regional parts of NSW, Victoria, Queensland and WA. For instance, regional NSW saw home values rise by $26,712, compared to an average wage of $60,073. In regional Victoria, house prices lifted just $11,920 while wages reached $62,300.
AMP chief economist Dr Shane Oliver noted that markets in Sydney, Melbourne, Hobart and Canberra have underperformed over the past year, having peaked well before Perth.
With 13 interests rate hikes between May 2022 and September 2023 and only two cuts so far in 2025, it remains uncertain whether further reductions will be enough to push house price growth above wage increases in those cities over the coming year, he said.
House prices had kept rising due to a lack of supply and strong population growth, albeit at a slower pace than during the COVID boom, he said.
But he had a warning for the still relatively affordable west coast market.
“Affordability was already worse in these [east coast] capitals so it left them more vulnerable to higher interest rates,” Oliver said. “Perth will start to run into trouble as affordability issues hit.”