The recent price hike of certain US local housing markets made Aussies sceptical about the affordability of homes in the nation.
However, even with the insane price of big metros, the prices are still attainable compared to the Australian market. US is the top choice for a dream home for many Aussies thanks to high-end amenities in a considerate budget, tax breaks, and diverse property collection around scenic locations.
A million can go a long way in the American housing market; in Florida and Texas, you can end up with a lavish four-bedroom Mediterranean house near the city centre.
With the same budget, large Aussie houses will be either on the outskirts of the city with hours of driving to the downtown or a modest unit in downtown Victoria.
Thus, the American dream of economic homes for Aussies is still alive.
Can Aussies Still Afford Homeownership in the US?
The US residential market has a wild run in 2024. Yet, it’s nothing compared to Australia’s home prices. Property prices have reached a level where Aussies are resorting to tiny houses to cut back on housing.
Aussies can still afford homeownership in the US, as the average house price in the US is around $2541/ square metre – significantly less than the $8470/ square metre of average Australian houses.
To put the pricing in perspective, here is the median house price comparison of top US and AU cities:
| AU City | Median Price | US City | Median Price |
| Sydney | $1,139,375 | New York | $1,157,863 |
| Brisbane | $817,564 | Florida | $616,021 |
| Melbourne | $778,892 | Virginia | $598,405 |
Even though AU has satellite cities and outskirts where home prices are beyond limits, the water and employment shortage makes the residents flock to the best states, such as Sydney, Perth, and Melbourne, rather than smaller towns.
In contrast, affordable US suburban areas have education, employment, and utilities similar to a high-end metro. Hence, Aussies can still afford homes in the US, considering the price and amenities.
Why is the US Housing Market Better for the Aussies?
1. No Bidding Wars
Unlike the US, where auctioned properties are mostly foreclosed homes or one-of-a-kind mansions, housing auctions at AU cover a wide range of residential properties.
Another form of a bidding war at AU comes from prospective buyers offering hundreds of thousands more than the listed price, leading to tough competition to get the desired one.
The astounding offered price makes new Aussie homeowners sell their properties for profit; some Western Perth homeowners can sell their house for a million dollars more only six months after the purchase.
These unhealthy housing market conditions in Australia are shifting the Aussies to other regions, especially the US.
American residential real estate market has comparatively favourable buying conditions. Only the summer buying rush at certain localities see people offering more than the listed price, yet, in most cases, it doesn’t stretch to a hundred thousand.
Also, most local housing markets are seeing price cuts on million-dollar properties and free mortgage refinancing options – enabling buyers to purchase high-end houses within their budget.
2. Attainable Price Around Prime Locations
When it comes to buying a house near a beach or a coveted community, the American housing market offers majestic architectural wonders at a fraction of Australian home prices.
The price differences between beachside, lakeside, and downtown residential properties are higher than those in suburban areas.
Brisbane, the Queensland capital known for magnificent waterbodies and greenery, has an average unit listing price of $582,000. Meanwhile, Brisbane’s US counterpart, Tampa – known for beaches, world-class cuisine, and entertainment – has an average unit (condo) listing price of around $408,000, expected to decline even more.
You can find beachside houses in AU within $600K, but they are most likely far away from the cities with stringent amenities.
To put the price difference in perspective, a 613 square metres house at New South Wales’s Palm Beach (Australia) has a listing price of a whopping $23 million – meaning the price can go even higher if there are multiple interested parties.
In contrast, an Aussie can buy at the Dakota Del Ray Beach (Florida, US) neighbourhood for around $1.7 million without sacrificing the beach views, size (560 square metres), and architectural ingenuity.
Keen to see for yourself? Check out some of Dakota Del Ray’s stunning beachside homes and envision your dream lifestyle by the sea.
3. No Hidden Costs
Homebuying in Australia can break the bank due to the hidden cost of utility installation, insurance, brokers, and stamp duty added to the property.
Since the new construction and city outskirts have water shortages, the homebuyers must pay for the water pipe upgrade.
Also, the climbing temperature and drought increased the chance of bonfires – meaning there would be a higher insurance premium.
Apart from the installations, the stamp duty can be a nightmare as it is 2%-5% of the total home’s value, depending on the states and territories.
Only first-home buyers and buyers of uber-luxurious properties (going over tens of millions) get a cut at the stump duty. In the US the title transfer fee (same as stamp duty) takes USD30 to USD1.10 per USD1,000 of home value – significantly lower than Australian charges.
Moreover, the AU’s first home buyers must set aside for mortgage brokers. Unlike the US housing market, where the realtor covers legal and mortgage-related issues, a newbie Aussie homebuyer must hire a mortgage broker to get the best deal in the competitive market.
Outro
Since Sydney’s median home price is expected to reach $2M by 2027, the US housing market can be an excellent alternative for remote workers, retirees, and individuals willing to relocate for affordability.
Although the US housing market seems to be pricey during the summer seasons or in markets with low inventory, Aussies can grab their dream house upon proper planning at coveted neighbourhoods.
