‘Unattainable’: Sydney singles shut-out of market - realestate.com.au

Sydney singles on an average salary can afford homes in zero per cent of suburbs, new research has found, as interest rate rises wipe out gains from falling property values.

Falling home values were supposed to help buyers break into the market – but four interest rate rises this year have cut into borrowing power and pushed repayments higher, with new research showing Sydney singles on an average salary can afford homes in zero per cent of suburbs.

As households stare down the barrel of a fifth interest rate, with the next Reserve Bank decision on Tuesday looking likely due to recent inflation figures, analysis by Compare the Market shows affordable property options have more than halved nationally for single buyers, while couples also face a sharp decline.

Singles bare the brunt of the affordability squeeze with an average salary seeing just 2.83 per cent of suburbs nationally affordable, down from 6.24 per cent in 2025.

The percentage of suburbs deemed affordable for single Sydneysiders was particularly bleak, sitting at 0 per cent, down from 0.16 per cent in September 2025.

The findings from the upcoming Household Budget Barometer report reveal a property was considered affordable where repayments did not exceed 30 per cent of household income.

Couples earning two average salaries are able to afford at least one property type in Sydney across 16.88 per cent of suburbs in 2026, down from 21.39 per cent last year.

Compare the Market property expert Andrew Winter said the conditions were especially tough for single buyers, who were often competing for units against couples priced out of bigger houses.

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New Compare the Market Household Budget Barometer report reveals affordable property options have more than halved for single buyers, in Greater Sydney singles affordability sits at 0 per cent of suburbs

“Property values are coming down, which should make homes more affordable, but higher interest rates are wiping out those gains by squeezing borrowing power,” Mr Winter said.

“Meanwhile, the supply of properties that are accessible to people on a single salary is extremely limited. That’s why it’s even harder to be a single buyer this year.”

Mr Winter said two incomes were still better than one, but the figures show that today’s market conditions could be tough, even for regular couples.

“Affordability in the market is extremely low, and that makes it very important to understand your borrowing capacity because, if something were to happen – if one of you lost your job or needed a career break at some point – there’s very little wiggle room between your income and your repayments,” Mr Winter said.

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Compare the Market property expert Andrew Winter said while property values are coming down, higher interest rates are wiping out those gains by squeezing borrowing power

Compare the Market Economic Director David Koch said Sydney has been out of reach for singles for a long time.

“It’s not a new problem – but it’s disappointing to see that after all these years and time for building and planning the situation isn’t getting better,” he said.

“If you’re a single in Sydney, buying alone on a typical salary isn’t realistic right now.

“That’s why I’d encourage people to look at what they can control: saving a bigger deposit, understanding their borrowing power, and being open to other locations or property types.”

Mr Koch said while values have come down loans are bigger and interest rates are higher, squeezing how much people can borrow.

Compare the Market Economic Director David Koch said Sydney property has been out of reach for single buyers for a long time

Pointing to the average home loan nationally around $731,000, with repayments of about $4,502 a month buyers would need a household income of roughly $15,000 a month to stay under the 30 per cent rule of thumb, he said.

“So the drop in prices has been wiped out by the rise in the cost of the loan,” Mr Koch said.

“Every rate rise cuts into borrowing power and pushes repayments higher.”

Mr Koch said while two incomes are still better than one, even regular couples are now locked out of most of the country.

“That tells me affordability is extremely low, and buyers need to know theirborrowing capacity before they go anywhere near an open home,” he said.

Sydney renter Thomas Pospieszny said it has become “unattaible” to purchase property in Sydney. Picture Thomas Lisson

Sydneysider Thomas Pospieszny has been renting at Coronation Property’s Mason & Main development in Merrylands for over two years, 15 years ago he and his former partner purchased an apartment, followed by a house.

Mr Pospienszny said “you can’t compare” housing affordability today to when he had purchased decades ago, adding Sydney property has become “unattainable” particularly for singles.

“The apartment was a two-bedroom apartment in Homebush that was brand new with double car park, I think we paid $450,000. Right now in Homebush that would cost probably a double that easily,” he said.

“I’m on a really good income and I can’t see how a single person right now could save up for a property or buy it without sacrificing majority of their lifestyle for a really long time.”

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