Aussie homeowners are now sitting on staggering amounts of wealth despite rate rises

The staggering amount Aussie homeowners have made in the past five years has been laid bare, with some suburbs now $850,000 better off.

Homeownership has been generating extreme wealth for those who bought their properties in recent years, with new research laying bare the staggering effect of home value rises in the past five years alone.

The PropTrack data tracked average home value movements across every Australian suburb since 2018, revealing owners in hundreds of areas saw the value of their properties jump by more than $500,000.

That’s more than $100,000 for each of the past five years, higher than the typical Aussie full-time salary of $93,000 a year and the $71,000 average earnings of all wage earners, according to ABS figures.

SEE HOME VALUE RISES BELOW

There were hundreds more suburbs where the average house or unit value rise was more than $200,000.

Home prices have been rising again in some cities, with auction activity rising. Picture: Julian Andrews

Most of the truly jaw dropping value rises – $1 million or more – were in Sydney’s Harbour suburbs and cashed up coastal towns like Byron Bay.

But there were also significant rises in popular parts of Melbourne, Brisbane, Adelaide and Perth.

Brisbane suburbs had value rises of up to about $900,000 over the five years, with 269 suburbs seeing a rises of more than $110,000 and 49 seeing rises of at least $400,000.

In Melbourne, median home values climbed by more than $200,000 in 90 suburbs and by at least $150,000 in a further 51 locations.

Big rises were also recorded in some so-called “battler” suburbs where prices had historically been affordable for blue collar workers and essential services professionals such as nurses and teachers.

PropTrack economist Angus Moore said the rapid equity gains in some areas created considerable wealth for many families.

“There is a wealth effect,” he said. “Those households will be a lot more confident in their spending and they will be able to use that equity to upgrade their home sooner than they may have expected.”

Biggest house value increases in five years (with percentage rise)

SYDNEY

Copacabana 92% (+$850,000)

North Avoca 76% (+$787,000)

Vaucluse 72% (+$3.66m)

See full list of Sydney suburbs by average equity increase in dollars

MELBOURNE

Clyde 74% (+$292,000)

Blairgowrie 71% (+$686,000)

Balnarring 68% (+$564,000)

See full list of Melbourne suburbs by average equity increase in dollars

BRISBANE

Regency Downs 96% (+$297,000)

Chelmer 90% (+$890,000)

Woodford 82% (+$290,000)

See full list of Brisbane suburbs by average equity increase in dollars

ADELAIDE

Elizabeth North 98.4% (+$152,000)

Smithfield Plains 97.2% (+$175,000)

Sellicks Beach 96.3% (+$323,000)

See full list of Adelaide suburbs

PERTH

Swanbourne 70.5% (+$986,000)

Trigg 61% (+$671,000)

Sorrento 56% (+$515,000)

See full list of suburbs

HOBART

Rokeby 133% (+$342,000)

Bridgewater 107% (+$235,000)

Dodges Ferry 104% (+$322,000)

See full list of Hobart suburbs