What you need to earn to buy a typical home in Geelong in 2024

New research has revealed what people need to earn to afford to buy a typical home in Geelong in 2024. Search your suburb on an interactive map.

10 Russell St, Newtown, is listed for sale with price hopes of $1.225m to $1.325m.

What people need to earn in a year to afford to buy a typical house in the Geelong region has increased this year, new data reveals.

Despite house prices falling over the past year, research from Finder.com.au reveals affordability became more challenging in the region, with rising interest rates taking much of the blame.

The research calculated the before-tax annual income required to purchase a home at the median price of a suburb, where home loan repayments would not exceed 30 per cent of your salary.

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The data shows buyers would need an $150,000 income to afford a typical house in the Geelong region, valued at $760,000.

The income required rose between 8 per cent and 17 per cent in the past 12 months in Geelong, which represented between $5000 and $26,000 depending on the suburb’s median house or unit price.

Eight location, mainly coastal hot spots, required $200,000 a year to break in to the market, with three – Lorne, Barwon Heads and Anglesea – needing more than a $300,000.

Within urban Geelong, entry-point for buyers earning less than $100,000 to purchase a typical house were in Whittington, Corio and Norlane.

There are 12 suburbs where units are affordable for buyers on less than $100,000.

13 Vermont Ave, Corio, is listed for sale with $459,000 to $499,000 price hopes.

Finder.com.au head of consumer research Graham Cooke said the income required to purchase homes in many areas often eclipsed average wage increases.

“It’s the rising cost of interest that’s probably having the biggest impact generally,” he said.

“That’s left many people in the position where they need to spend more than they did a year ago but, unless their income has really gone up, the amount they can borrow is less.”

31-32 Senior Court, Highton, is listed for sale with price hopes from $880,000 to $950,000.

Mr Cooke added that bank lending practices were proving an additional hurdle for new buyers.

“It was a competitive market when rates first started to increase (in 2022) as the banks were trying hard to get new business. Now that’s starting to pull back.

“It’s difficult to track but there’s anecdotal evidence that banks are making it harder.”

20 Settlement Rd, Belmont, is listed for sale with price hopes from $665,000 to $695,000.

Many successful home buyers may be getting help from the bank of mum and dad, Mr Cooke said.

GSC Finance Solutions mortgage broker Matt Turner said homebuyers could pull different levers to maximise their buying capacity outside of working more hours, such as reviewing their existing living expenses, paying out personal and car loans and afterpays, or choosing a second-tier lender, which, while comes with higher interest rates and fees, could allow them to borrow more money.

18 Lightwood Rd, Lara, is listed for sale with a $680,000 to $720,000 price guide.

Mr Turner said first-home buyers were more active in the past six months, confident interest rates had peaked, while also watching rents rise sharply.

A more neutral market that’s not favouring buyers or sellers was helping first-time purchasers get in to property, he said.

“The pricing is pretty accurate, so they’re not feeling like they’re needing to really stretch to buy properties,” he said.

“There’s still plenty of first-home guarantee spots available for 5 per cent genuine savings and the government guarantees the rest.”

Rising rents also helped clarify the value of spending money paying off a home instead of on rent.

Elite Buyers Agents Geelong buyers advocate Vicki Whittaker.

Elite Buyers Agents buyers advocate Vicki Whittaker said there were hopeful buyers who knew what they wanted and were prepared to wait for the right property to come along, but plenty were still naive about how to buy a home.

“We’ve had quite a few inquiries from first-home buyers who have just got no idea where to start,” she said.

66 Inglenook Circuit, Armstrong Creek, is listed for sale with price hopes from $695,000 to $755,000.

“Like starting the finance process, maybe not having a deposit and not realise they need a little bit more.

“I think people are thinking you can get a bargain at the moment. Even though the prices have dropped, I don’t see bargains.”

Originally published as What you need to earn to buy a typical home in Geelong in 2024