Summary of Lost Purchasing PowerWage growth: 9.2×House price growth: 54.3×Result: Median workers now need nearly 6 times more years of income (or equivalent work hours) to buy a House (1975 to 2026)

Graham Healy
Jul 13
2 min read

Summary of Lost Purchasing PowerWage growth: 9.2×House price growth: 54.3×Result: Median workers now need nearly 6 times more years of income (or equivalent work hours) to buy a House (1975 to 2026) By Graham Healy Mon 13 July 26 **Wages vs House Prices: 1975–2026 Comparison (Australia)**

**Key Assumptions** (based on historical data):

- 1975 Average Full-Time Annual Earnings: **$7,600**

- 2026 Median Wage (typical worker): **$70,000** (as provided)

- Brisbane 1975 Median House Price: **$17,500**

- 2026 Median House Price (national/Brisbane-aligned): **$950,000**

### 1. Multipliers (Growth Factors 1975 → 2026)

|-------------------------|---------------|----------------|------------|----------------|

| Annual Wage | $7,600 | $70,000 | **9.2x** | Wages grew 9.2 times |

| Median House Price | $17,500 | $950,000 | **54.3x** | House prices grew 54.3 times |

| **House Price vs Wage Ratio** | - | - | **5.9x** | Houses became **5.9 times less affordable** relative to wages |

### 2. Purchasing Power & Affordability Table

|--------|-------------|--------------------|---------------------------|-------------------------|--------------------------|---------------------|

| **1975** | $7,600 | $17,500 | **2.3 years** | ~$3.90 | ~4,500 hours | Highly affordable |

| **2026** | $70,000 | $950,000 | **13.6 years** | ~$35 | ~27,140 hours | Severely unaffordable |

### Summary of Lost Purchasing Power

- **Wage growth**: 9.2×

- **House price growth**: 54.3×

- **Result**: Median workers now need **nearly 6 times more years of income** (or equivalent work hours) to buy a typical house compared to 1975.

This table clearly demonstrates the erosion of housing affordability for average Australian workers.