EVEN suburbs traditionally seen as obtainable for young professionals, including Ellenbrook, Ballajura and Rockingham are considered “seriously unaffordable”, according to the Property Council of Australia.

The property council’s Beyond Reach: Mapping Perth’s Housing Crisis for our Frontline Workers report surveyed the affordability of 15 suburbs including Midland.

Property Council WA executive Nicola Brischetto said Perth’s housing crisis had all but locked the most important frontline workers out of home ownership.

“Concerningly, in Perth suburbs traditionally considered affordable, such as Armadale, Gosnells and Midland, home ownership is now out of reach for frontline workers in single-income households,’’ she said.

“Even in dual-income households, home ownership for our key workers is now unaffordable in the majority of the suburbs surveyed.

“This comes as no surprise, given that since 2020, median house prices in Perth have risen by more than 65 per cent and rents have increased by more than 83 per cent.

“Unlike office workers, frontline workers don’t have the option of working from home and frequently work odd hours – they need to be able to live near their workplace.’’

The report used six hypothetical households – to benchmark “real life” housing affordability challenges for key workers.

They ranged from dual-income couples earning more than double the Perth median ($97,000) to experienced individuals hovering around the minimum wage.

The key finding was that homeownership was beyond reach for frontline workers on a single income locked out of homeownership across Perth with the report saying the highest-paid single frontline worker, an experienced police officer, unable to buy a home or service a mortgage in any of the suburbs surveyed in the report.

For the lowest-paid frontline worker, a childcare worker, homeownership is considered “impossibly unaffordable” in every Perth suburb surveyed,’’ the report said.

“Perth’s urban fringe holds the last remaining pockets of affordable homes – for those with dual incomes.

“Even for dual-income households with competitive wages, homeownership is almost beyond reach in Perth.

“Only household three, an ambulance officer and nurse earning a combined $211,124 annually, can afford a detached home in Perth.

“But those detached homes considered “affordable” for the couple can only be found along Perth’s eastern urban fringe, in Midland, Gosnells and Armadale.

“A household comprised of a primary school teacher and an administrative assistant, earning a combined $169,133 annually, would find housing unaffordable in all suburbs surveyed in this report.

“Even suburbs traditionally seen as obtainable for young professionals, including Ellenbrook, Ballajura and Rockingham, are considered ‘seriously unaffordable’.”

All suburbs surveyed in the report were unaffordable for a single police officer earning $93,383.

Nine of the 15 suburbs surveyed fall under Demographia’s “impossibly unaffordable” definition – Demographia applies a median price-to-income ratio,  to determine affordability.

According to the property council report the police officer is no better off under the home guarantee scheme.

“In terms of mortgage stress the police officer would find no detached home or unit affordable in any of the suburbs surveyed.’’

Household three, made up of an ambulance officer and a nurse, had the highest income in the report, earning a combined $211,124 annually.

“Despite having the greatest purchasing power of any of our hypothetical households, housing is affordable in just three of the suburbs surveyed.

“Only detached homes in Midland, Gosnells and Armadale are considered ‘affordable’ for this couple under the Demographia definition.

“Homes in Ellenbrook, Ballajura and Rockingham are marginally above the affordable threshold.’’

The report said key considerations for the households included that they were aged in their late 20s, started attaining qualifications straight after high school and were being paid award wages based on their years of experience.

“Their professional experience ranges from three years to a decade.

“Regardless of where these frontline workers sit on the income ladder, the possibility of home ownership is primarily restricted to Perth’s urban edge, which is quickly becoming unaffordable.’’

A young public servant earning $85,093 annually is completely locked out of homeownership across all suburbs surveyed in the report.

Ten of the 15 suburbs fall under Demographia’s “impossibly unaffordable” definition for the single income household.

Even the cheapest suburb surveyed by this report – Armadale – is considered “severely unaffordable” for the young professional.

“Servicing a mortgage in Armadale would require nearly 50 per cent of their pre-tax income, effectively barring them from homeownership.

“An electrician and shop assistant with a combined income of $147,646 only has one option in obtaining affordable homeownership in Perth – a home in Armadale with a mortgage backed by the home guarantee scheme.

“Under the mortgage stress methodology the couple is just able to secure an affordable detached home in Armadale.

“Without it, even Armadale would fall under Demographia’s definition of “unaffordable” for the dual income couple, with the average house price nearly four times their combined annual income.

“Traditionally affordable suburbs such as Ellenbrook, Ballajura, Gosnells and Midland are defined as being unaffordable regardless of whether they can take advantage of the home guarantee scheme.’’

A single childcare worker on a $57,200 salary is completely locked out of homeownership in Perth.

“Even homes in suburbs at the lower end of the price scale are at least 10 times greater than the childcare worker’s income, making it impossible for them to enter Perth’s property ladder.

“In Shenton Park, average home prices are a staggering 36.1 times greater than the frontline worker’s wage.

“Average home prices in five of the suburbs surveyed are at least 20 times greater than the childcare worker’s wage.

“Even with the support of the home guarantee scheme, ownership is beyond reach for them in Perth.”

The Demographia international housing affordability 2024 edition said the least affordable market in the English-speaking world in 2023 was Hong Kong, with a median multiple of 16.7, followed by Sydney at 13.3, Vancouver at 12.3, San Jose (CA) at 11.9, Los Angeles at 10.9, Honolulu at 10.5, Melbourne at 9.8, San Francisco and Adelaide at 9.7, San Diego at 9.5 and Toronto at 9.3.

See charts below for area maps.