Once, buying a home was a rite of passage for ordinary Australians. Today, only 15% of median-income households can afford to buy a home — down from 43% just three years ago. This is the story of how the Australian Dream slipped away, and who is paying the price.

Chart 1: The Great Divergence — House Prices vs Wages (2002–2024)

Since 2002, Australian house prices have grown more than three times faster than wages. What was once a gap has become a chasm. Both series are indexed to 100 in 2002 to allow direct comparison.

Sources: ABS Residential Property Price Indexes, Australia (Cat. 6416.0); ABS Wage Price Index, Australia (Cat. 6345.0). Both series indexed to 100 in 2002.

Chart 2: Affordability Collapse Across Australian Cities

Median house prices have tripled or more in every major Australian city since 2002. Sydney now costs over $1.4 million — pricing out an entire generation. Use the legend to show or hide cities.

Source: ABS Total Value of Dwellings, Table 2. Median Price and Number of Transfers, Capital City and Rest of State (Cat. No. 6432.0).

Chart 3: The Squeeze — Wages, Inflation, and Rent (2010–2025)

Australians are earning more — but inflation and rent are growing faster. This three-variable chart shows how real purchasing power has eroded since 2021. Hover over any point to compare all three measures at once.

Sources: ABS Consumer Price Index, Australia (Cat. No. 6401.0); ABS Wage Price Index, Australia (Cat. No. 6345.0). Rent index based on ABS CPI rent component. All series indexed to 100 at 2010.

Chart 4: Young Australians — Locked Out of Jobs and Homes

Youth unemployment among 15–24 year olds has consistently sat at nearly double the national rate. The COVID pandemic caused a dramatic spike — and young Australians are still recovering.

Sources: ABS Labour Force Survey, Table 13 — Labour force status for 15–24 year olds (Cat. No. 6202.0); ABS Labour Force Survey, Table 01 — Labour force status by Sex, Australia (Cat. No. 6202.0). Trend series shown.

Chart 5: Who Owns Australia? Wealth Inequality Over Time

Australia’s wealthiest 20% hold more than 60% of all household wealth — and their share is growing. Meanwhile, the bottom 40% hold less than 5%. This chart breaks down mean net worth by quintile across a decade.

Source: ABS Household Income and Wealth, Australia, 2019–20 (Cat. No. 6523.0), Table 2.2 — Equivalised Net Worth by quintile. Released 28 April 2022.

References

Australian Bureau of Statistics. (2025). Total value of dwellings, December quarter 2025 (Cat. No. 6432.0). https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/total-value-dwellings/latest-release

Australian Bureau of Statistics. (2023). Consumer price index, Australia (Cat. No. 6401.0). https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/dec-2023

Australian Bureau of Statistics. (2026). Wage price index, Australia (Cat. No. 6345.0). https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release

Australian Bureau of Statistics. (2026a). Labour force, Australia, Table 13 — Labour force status for 15–24 year olds by sex (Cat. No. 6202.0). https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release

Australian Bureau of Statistics. (2026b). Labour force, Australia, Table 01 — Labour force status by sex (Cat. No. 6202.0). https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release

Australian Bureau of Statistics. (2022). Household income and wealth, Australia, 2019–20 (Cat. No. 6523.0). https://www.abs.gov.au/statistics/economy/finance/household-income-and-wealth-australia/2019-20

Davidson, P., Bradbury, B., & Wong, M. (2024). Inequality in Australia 2024: Who is affected and how. ACOSS & UNSW Sydney. https://povertyandinequality.acoss.org.au

Australian Institute of Health and Welfare. (2025). Housing affordability. https://www.aihw.gov.au/reports/australias-welfare/housing-affordability

Data visualisations developed in R using plotly. Published on RPubs.