The one group of Aussies who can all but give up on the dream of ever buying a house
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Single Australians are most at risk of never being able to afford a home as house prices and interest rates soar.
House prices have continued to surge, especially in Australia's capital cities, despite the Reserve Bank raising interest rates 13 times in 2022 and 2023.
The most aggressive rate rises since 1989 have also reduced what banks can lend, as existing borrowers battle much higher monthly mortgage repayments.
In Sydney, a borrower now needs to be among the top 3.8 per cent of income earners, on a salary of more than $220,000, to even get a loan for a typical house - and they will still be in mortgage stress.
Mozo personal finance expert Rachel Wastell said single people were now priced out of ever buying a house.
Single Australians are the group with a career now deemed most at risk of never ever being able to afford a home.
In Sydney , a borrower now needs to be among the top 3.8 per cent of income earners, on a salary of more than $220,000, to even get a loan for a typical house - and they will still be in mortgage stress
'With skyrocketing home prices and rising interest rates, the proportion of income needed to service a mortgage is at a record high, making it increasingly unlikely that singles can afford to buy a home on their own,' she said.
Australia's median house price of $848,383 is now so dear someone with a 20 per cent deposit of $169,677 would need to earn $130,520 to even qualify for a $678,706 loan.
That's based on banks now only being able lend a borrower 5.2 times their salary, before tax.
Even then, a homebuyer would be in mortgage stress borrowing at the maximum capacity and dedicating more than a third of their income to servicing a loan.
In Sydney, the mid-point house price in May was $1.442million, CoreLogic data showed.
This meant someone needed to earn $221,840 to even get a $1.154million loan with a hefty $288,391 deposit.
Mozo personal finance expert Rachel Wastell said single people were now priced out of ever buying a house
This individual would still be in mortgage stress despite being among the top 3.8 per cent of income earners who had a taxable income of more than $217,718 in 2021-22, new tax office data released on Monday showed.
Ms Wastell said single people needed to consider buying with a family member or a friend to get into the housing market.
'By pooling resources, singles could increase their buying power and share the burden of high repayments, making it easier to enter the property market,' she said.
'Collaborating with family or friends to buy a property can be a smart move, but it's vital to approach it with clear agreements and have everything in writing.'
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