‘Mega-commute’ becoming the norm for Australians

As the populations of Australia’s major cities like Melbourne and Sydney continue to boom, driving house prices skyward, more and more people are adapting to the idea of the ‘mega-commute,’ taking anywhere upwards of two hours just to get to their jobs or school in the city.

Rather than commute to work every day, however, most people are opting to work a few days a week to compensate for the abnormally long commute times. This is particularly the case with those who earn higher incomes, which makes the commute worthwhile.

House prices

In greater Melbourne, to buy a median-priced three-bedroom house of $690,000 and to avoid paying more than 30% of pre-tax income on mortgage repayments, a household would need to earn an income of $111,876 if paying 4.5% or $150,625 if paying 7.25%. In the more established areas, where house prices are significantly more expensive, those numbers take an astronomical leap.

Compare this to Ballarat Central, where the median three-bedroom house price is just $437,000, the income needed to comfortably cover mortgage repayments is $70,855 at 4.5% or $95,396 at 7.25%.  

Population growth

According to the Australian Bureau of Statistics, Melbourne had the largest population growth of all major Australian cities in 2017, at 125,400. And infrastructure is not currently equipped to keep up with the growth.

This makes the idea of travelling from regional centres more appealing, and with millions being poured into the upgrade of the Ballarat line, they are set to become more attractive options as more people move out of the cities to find affordable living.

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This article was originally featured in the Sydney Morning Herald.