Real estate wealth: the regional NSW locations where people earn more from their homes than their jobs

The homes in 72 regional NSW areas made their owners more money each year than they pocketed from their jobs. Find out if you live in one of them with our interactive tool

Cameron and Ashley Marshall, with kids Riley, Austin, Bridie and Carter, are selling their Yerrinbool home that shot up in value. Picture: Sam Ruttyn

Owning real estate has become a massive source of wealth for those lucky enough to buy in the regional NSW areas with the fastest growing prices.

Data provided exclusively to the Sunday Telegraph from realestate.com.au showed the homes in 72 regional locations made their owners, on average, more money in value increases each year than they pocketed from their day jobs.

It comes as the Covid pandemic continues to encourage Sydneysiders to flee the big smoke for areas with more space, which has fuelled an explosion in regional property prices not seen since the 1980s.

MORE: Sydney suburbs where your home earns more than you

Regions where homeowners were earning up to three times more from their houses than their jobs included parts of the south coast, Wollongong and the Southern Highlands.

Owners also scored rapid wealth from houses in Newcastle’s beach suburbs and pockets near Port Macquarie, according to the realestate.com.au study of property prices and wage data since 2018.

But the most extreme gap between average annual incomes and the average rate of yearly home value increases was in the hinterland of the Northern Rivers region near Byron Bay.

Homeowners in the postcode that includes Bangalow, Possum Creek and Coorabell, among others, made about $305,000 a year from their houses due to skyrocketing home values.

This was more than four times the $65,000 local residents usually made from their jobs.

Owners in nearby Byron Bay, Ewingsdale and Suffolk Park, which has been in the national spotlight since actor Chris Hemsworth’s built a massive compound there, made about $297,000 in yearly equity gains. This was also more than four times the typical yearly income of residents.

$500,000 price jump in one year: this Bangalow house sold in 2020 for $1.2m and again in 2021 for $1.7m.

Property in Bulli, a northern suburb of Wollongong, was the best performer south of Sydney.

House values in the suburb went up by an average of about $280,000 a year over the period, three times the $76,000 average income for residents in the area.

Some regional homeowners made well above these sums and said they couldn’t believe their luck.

Southern Highlands resident Cameron Marshall got his Yerrinbool house valued six months ago and, after doing $100,000 worth of work to it, recently discovered the value had shot up by $800,000.

“The money coming through the area at the moment is just unheard of. I was quite surprised,” Mr Marshall said, adding his family were now selling their home on Western Rd to cash in.

Ray White-Mittagong agent Rick Mooney said Southern Highlands residents who weren’t keeping track of the market were frequently surprised by how much their houses were worth.

“Even at the bottom of the market, people can’t believe what their homes get valued at. Then they sell and they often get even more than that,” he said.

Realestate.com.au economist Paul Ryan said most regional markets where homeowners pocketed the biggest value increases were within commuting distance of Sydney.

They also offered larger blocks, in some cases acreages, or were close to the coast, beaches or national parks, he said.

“The areas doing really well offer lifestyle features and are appealing for Sydney workers who need to commute to the city once or twice a week. It’s a Covid trend,” Mr Ryan said.

The Byron Bay area was a notable exception. “Byron now has gravity in itself. It’s drawing buyers from (across the country),” Mr Ryan said.

$7.74m difference in five years: This Mollymook home recently sold for $10m, well above the $2.26m price it sold for five years ago.

Property values in regional areas were able to skyrocket so quickly because many Sydney buyers were cashing in expensive city houses, moving to the country, and bidding up prices, Mr Ryan said.

“Sydney was expensive to start with and as the prices there have risen, homeowners got a lot more equity over a very short time, which they can spend on their next house,” he said.

Ray White chief economist Nerida Conisbee said rising property prices were the main reason household wealth was at record levels.

“Most people’s wealth is tied up in their home,” she said. “The increases had a huge impact on consumer confidence … people feel better about their financial situation when their homes rise in value.”

Property price rises were eclipsing growth in wages for years before Covid but the gap between the two accelerated during the pandemic due to unprecedented market forces, Ms Conisbee said.

“Loan rates are at record lows, households are saving much more than before and have bigger deposits. They are also willing to spend a lot more on housing,” she said.

Originally published as Real estate wealth: the regional NSW locations where people earn more from their homes than their jobs