How Much Do You Need to Earn to Buy a Home in Melbourne?
To afford the median A$930,000 single-family home in Melbourne with 20% down, your household needs to earn A$193,604/year (or A$93.08/hour)—which is 101.7% higher than Melbourne's actual median household income of A$96,000.
Property Tier & Custom Calculator
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Required Salary vs. Actual Local Income in Melbourne
Direct comparison between local household earning power and the salary needed to buy each property type.
The Melbourne Affordability Reality Check
A median household in Melbourne earning A$96,000 faces an affordability deficit of 101.7% (A$97,604/year) compared to the A$193,604 required to purchase this property. Buyers typically compensate by purchasing starter apartments, applying a dual-earner income, or receiving family down payment assistance.
Australian APRA +3.0% Serviceability Buffer
How local lenders formally underwrite and cap homebuyer borrowing in Melbourne.
Standard Australian housing affordability threshold based on actual contract rate of 6.2%.
Australian banks stress-test at 9.2% (Stress P&I: A$6,094/mo) to ensure serviceability.
State stamp duty plus conveyancing costs required in upfront liquid cash at settlement.
3 Qualifying Salary Tiers
Depending on your risk tolerance and other living expenses, here is how much you should earn.
Leaves generous breathing room for family goals, high-yield investing, and emergency reserves.
The standard threshold mortgage underwriters use to approve or reject your loan application.
The upper outer boundary lenders will tolerate before denying loan approval.
Upfront Cash Needed to Close
Day 1 Liquid ReservesTotal liquid savings required in Melbourne before you can sign closing documents.
Closing friction (Stamp Duty, Notary taxes, title insurance, legal fees) cannot be financed into the loan and must be wired in liquid funds at settlement.
Where Else Could You Buy With A$193,604?
With the A$193,604 household salary needed in Melbourne, here is how your purchasing power compares in other major metropolitan markets:
Stress-Test Your Melbourne Decision
Take your analysis further with our institutional forecasting tools configured with Melbourne's live market metrics.
Frequently Asked Questions About Buying in Melbourne (2026)
Market Summary Benchmark
Melbourne Housing Affordability at a Glance
The following table summarizes core housing underwriting metrics for Melbourne, VIC, Australia for 2026.
| Housing Metric | Local Value |
|---|---|
| Single-Family Median Home Price | A$930,000 |
| Starter Apartment / 2-Bed Condo Median | A$580,000 |
| Required Annual Salary (Median Home) | A$193,604/yr |
| Required Annual Salary (Starter Condo/Flat) | A$132,208/yr |
| Actual Local Median Household Income | A$96,000/yr |
| Local Affordability Gap (%) | +101.7% Deficit |
| Home Price to Income Ratio | 9.7x |
| Estimated Total Monthly Housing (PITI) | A$4,840/mo |
| Total Day 1 Liquid Cash to Close | A$237,150 |
| Comparable 2-3 Bed Monthly Rent | A$2,400/mo |