Where buyers can find the most affordable houses within 10 kilometres of the Sydney CBD – Medical Marijuana Program Connection

Buyers could purchase a median priced unit in Rushcutters Bay, just 1.8 kilometres from the CBD, for $681,500, a fraction of the cost of houses within a similar distance. Further afield, they could secure larger units in suburbs like Canterbury ($641,000) and Hillsdale ($650,000), both just within the 10-kilometre radius.

Powell said those buying into inner suburbs were prioritising location, and the vibrancy of inner-city living, over the property itself, and noted a diverse array of housing was essential to provide affordability.

Commonwealth Bank’s head of Australian economics Gareth Aird said proximity to work, schools and transport had always been central to buyers’ decisions but has become unaffordable for many.

“We’re still talking about homes that are a big multiple of the average income…in fact [these medians] just highlight how unaffordable homes are for [average] new entrants into the housing market,” Aird said.

“It’s getting very hard for first home buyers to get into the market unless they have a degree of assistance given where interest rates are and given the decline in house prices has not offset the increase in interest rates. On that measure, affordability has gone backwards.”

But buyers can still find better bang for their buck in pockets of the inner city, at times by moving one suburb over. Leichhardt’s median of $1,692,500, for example, is well below prices in neighbouring Rozelle ($1,925,000) and Lilyfield ($2,097,500).