Australians intending to buy a median house in Brisbane must earn over AU$17,000 more in annual household income in May than they did in January just to service a typical mortgage, with Perth buyers facing a similar AU$16,500 income requirement spike over the same five-month period, according to a Thursday report by Cotality.

The report said easing home values in Sydney and Melbourne have not improved affordability, as higher interest rates continue to increase borrowing costs and mortgage pressures. Meanwhile, rising prices in mid-sized cities are pushing entry costs to record highs.

Brisbane's unit market has shifted sharply on the back of strong buyer demand, narrowing the gap in minimum income needed to purchase a median unit between Sydney and Brisbane to just over AU$2,000, the report added.

Sydney home values dropped 0.9% in May and now sit 2.1% below their November 2025 high, while Melbourne values fell 0.8% for the month and remain 3.2% under their March 2022 peak, the report added.

Perth recorded annual value growth of 25.8%, far outpacing Melbourne's 0.5%, widening the spread between the fastest and slowest growing capitals to 25 percentage points. New listings reached 33,914 over the four weeks to June 14, running 4.9% below the five-year average, with total listings at 129,010, up 1.7% on a year earlier, it added.