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I've found a couple of relevant articles to this thread. The first is by the Unconventional Economist, and investigates House Price to Income Multiples. (The second link is the article.) The second is cited by the Unconventional Economist, and picks apart the RP Data Affordability...

I've been watching this thread for a couple of days, and having a think about some of the issues raised. I agree that using a multiple of median income is a very crude metric, and doesn't capture all the factors (such as tax or interest rates), but it's a useful rule of thumb. Sure there are...

Devo76, you'd have to be earning twice the median household income for the median house to start to look affordable. This is a chart showing income distribution in Australia. Assuming Sydney household incomes follow a similar distribution, you'd need to be in the top 10% of earners to...

OK, I'll take up Tubs's challenge. :D The only figure for Sydney's median household income in 2010 that I can find is $81,848. Depending on how I dice the figures, the ATO tax calculator gives me between $62K and $70K. (The lower is for a single earner, the higher for wages split equally...

This Wikipedia article also gives the median household income in Australia in 2007 to 2008 as $66,890. Given wage inflation, I'd estimate it somewhere between $70K and $75K. Yeah, I know, using an article on US incomes to get the Australian figure. :D The raw stats can be found at the ABS...

The new Demographia report on affordability has been released, and there's a bit of coverage at The Age. To save you reading, the top ten most expensive markets (median multiple in brackets) are: Hong Kong (11.9) Sydney (9.6) Vancouver (9.5) Bournemouth and Dorset (9.3) Coff's Harbour...