Where you can buy a house in Perth without the bank of mum and dad

Homebuyers without access to the bank of mum and dad would struggle to buy in much of inner Perth, even if they earn an above-average wage, new analysis shows.

Even high-earning couples would need to make compromises when looking to buy a freestanding house, CoreLogic’s head of Australian research Eliza Owen said.

The data, from CoreLogic and Canstar, also shows the typical Perth house is valued at $818,839 with the median unit value at $561,582. Across the city, only two suburbs remain where a single average income earner could afford a house without major outside help.

Using an average annual gross income of $100,017, based on ABS average weekly earnings, estimated borrowing capacity from Canstar research was compared to median home values for the city and each suburb, on CoreLogic data.

A single buyer, even if they earn an above-average wage of about $125,000, had few options to buy a house in Perth. They could afford to buy in suburbs no closer to the city than Nollamara, Cannington or Beechboro. Just two suburbs were affordable for average income single, the analysis of CoreLogic figures and Canstar modelling showed.

It was easier for couples. A pair of house hunters where one member earned an average income of about $100,000 and the other a lower income were able to choose from 206 affordable suburbs, though much of the inner city was out of reach. West Perth, Bedford and Joondanna were the closest options.

A couple where both members earned an above-average income had the most options, but were still locked out of many desirable western suburbs. Leederville, Scarborough and Como were all affordable, however.

Owen said average income earners are now more likely to be priced out to fringe markets of Perth, or just priced out of Perth all together.

“A single income earner on $100,000 per year has a budget of $497,000 based on Canstar analysis, but the lowest median house value across Perth observed by CoreLogic is in Leda, at $521,000,” she said.

“Further south, the first market close to that budget appears to be Myalup ($498,000) and Harvey ($468,500), both outside of Perth.”

To the east, Wundowie also sits within this budget with as median house value of $466,000.

Owen said the spillover of demand from Perth could drive people to other nearby, regional centres such as Bunbury, which currently has a median house value of $708,000, below Perth’s $842,000).

There are currently five suburbs where the median house value sits below $497,000 in Bunbury (Withers, Carey Park, Manjimup, Harvey and Collie).

Canstar data insights director Sally Tindall said rising house prices were pushing buyers without access to intergenerational wealth away from the city centre.

“People are increasingly having to look further afield, perhaps in suburbs they’ve never considered before or heard of,” she said.

“But what we know from property prices is the long-term trend is that they’re on the rise and a lot of people have been priced out of their family suburb when they go to buy their own first home.”

Strategic Property Group managing director Trent Fleskens said relief was coming with most commentators confident that interest rates will finally start dropping in 2025.

“It’s no surprise that as Perth’s median house price has increased faster than our median wage growth, our population is finding it harder to afford to purchase the home we would like,” he said.

“When you throw in the fact the interest rate we pay has tripled in the past four years, it can be an impossible dream for some.

“But we should hold a candle for our equivalents in Sydney where if you try to purchase the same house you are currently looking at in Perth it will be double the price.”

With Kristy Johnson