Salary needed to buy Sydney home in each suburb revealed as price falls forecast for 2025 [Video]

Home prices could drop by more than $100,000 in much of Sydney this year as buyers hit critical affordability barriers and interest rates remain elevated, economic modelling has revealed.

It comes as housing experts report much of the market became overvalued during 2024, with prices growing well beyond the reach of many people’s incomes.

Home seekers now need a household income of nearly $280,000 a year to afford a house at the current city median price of about $1.44m and about $160,000 a year to buy an average unit ($850,000), Finder analysis of mortgage and PropTrack price data showed.

There were an additional 300 areas – equivalent to about two in five Sydney suburbs – where house buyers needed to earn over $400,000 annually to afford the average house.

This is if they used a 20 per cent deposit, …