Despite recent declines in home prices following the federal budget in May, housing affordability in Queensland remains a significant challenge for buyers, with many requiring substantial income increases just to enter the market. New analysis based on realestate.com.au data by Canstar reveals that prospective homeowners in Queensland now need an average annual income of $177,554 to afford a typical property, a figure that exceeds the state’s average full-time wage by $73,840.

While the typical full-time employee in Queensland saw their salary rise by approximately $3,600 during the 2025-26 financial year, the income needed to qualify for a standard mortgage climbed by over $30,000 in the same period. This gap has widened particularly following recent interest rate adjustments, including three hikes before the latest increase this month, as well as changes to federal taxation. To meet this new borrowing threshold, homebuyers would have to work an additional 11 hours per week at the average hourly wage, underscoring how rising debt serviceability requirements, rather than property prices alone, are driving affordability issues.

Josh Sale, Canstar’s group manager of research, noted this trend reflects a “double squeeze” on buyers. He explained that reduced borrowing capacity means higher income is essential to secure loans for even less expensive homes, while ongoing inflation continues to hinder prospective buyers’ ability to save for deposits.

The analysis also highlighted striking regional disparities. Across Greater Brisbane, the income requirement for purchasing houses and units combined increased by $23,000 to a median salary threshold of $164,438, based on a $1.03 million median property value. In some middle-ring suburbs like Chermside, a typical $1.34 million home demands a household income of $227,140—effectively placing it out of reach even for many dual-income families. High-end properties in Teneriffe have seen the income bar rise dramatically to $865,143 for median prices around $5.2 million, marking an increase of $262,815. The unit market, traditionally more accessible, also shows elevated thresholds, with salaries needed to afford typical apartments in Paddington climbing above $168,000, up by more than $43,000. Notably, the suburb of Harristown near Toowoomba recorded the sharpest percentage increase in required income for apartments—a jump of 57.4 percent to $106,882.

Further reinforcing affordability woes, separate data from Loan Market indicates that average mortgage repayments for owner-occupiers in Queensland reached $4,815 monthly following the Reserve Bank of Australia’s most recent cash rate hike to 4.6 percent, the highest in 15 years. On an average $1.13 million home with an 80 percent loan, mortgage payments now consume about 66 percent of the borrower’s pre-tax income. This represents a significant increase from 2011, when the cash rate was near comparable levels but the median house price was approximately $428,800, resulting in repayments that accounted for only 39 percent of average earnings.

These figures collectively suggest that despite some easing in home prices, the interplay of higher interest rates and tighter lending criteria continues to place homeownership beyond the reach of many Queensland buyers.