First home buyers are in no better position to crack into the property market despite house prices falling in Sydney and Melbourne.
While home values have dipped for consecutive months in Australia's two largest markets, 2026's interest-rate hikes have raised the affordability hurdle even higher.
The income required to buy a median house in Sydney eclipsed $178,000 a year in May, up from $170,000 at the start of the year, data from property analytics firm Cotality showed.
In Melbourne, households had to earn more than $108,000 a year, compared to under $104,000 in January.
While the Reserve Bank held rates steady on Tuesday, its three interest rate hikes in February, March and May have collectively added about $450 in monthly interest payments for borrowers with a $1 million mortgage.
