
Sydney: Understanding Wealth Levels
Sydney, Australia, is a large city home to around 5.5 million people. When looking at how rich people are here, it’s helpful to look at typical incomes and compare them to the cost of living.
Income Levels in Sydney
Based on data from sources like the Australian Bureau of Statistics (ABS), incomes in Sydney are generally higher than the national average in Australia, and significantly higher than in many other countries.
- The median household income in Sydney is typically around 2,300 per week before tax. This means half of households earn more than this, and half earn less. Annually, this is roughly 120,000.
- Individual average weekly earnings for full-time workers in New South Wales (where Sydney is located) are often reported around 1,900 before tax. However, this is an average, and includes both very high and lower earners. A median individual income would be lower, perhaps closer to $1,200 per week.
These figures show that many people in Sydney earn a decent income, especially when compared globally.
Income vs. Cost of Living
While incomes are relatively high, Sydney is also one of the most expensive cities in the world to live in. Data from sources like Numbeo consistently show this.
- Housing: This is the biggest factor. Renting a home, especially in areas close to the city centre or the coast, is very costly. Buying a property requires a significant income or substantial savings, as median house prices are well over $1 million in many areas and several million in the most desirable suburbs.
- Daily Expenses: Costs for things like transport, groceries, and entertainment are also relatively high compared to many other places.
So, while Sydney offers higher earning potential in many jobs, the high cost of living, particularly housing, means that a significant portion of income is spent on basic necessities. This can make it challenging for individuals and families, even those on average incomes, to save or live a lavish lifestyle unless they are higher earners.
Wealth and Inequality
Wealth is not spread evenly across Sydney. There is a noticeable gap between the highest and lowest income areas.
- Wealthy Areas: Many of Sydney’s wealthiest residents live in specific areas, often with large properties and harbour views. These include suburbs in the Eastern Suburbs like Double Bay, Vaucluse, Bellevue Hill, and Point Piper, as well as certain suburbs on the North Shore like Mosman and Neutral Bay, and parts of the Northern Beaches.
- Property and Lifestyle: In these areas, properties can be worth tens of millions of dollars. The lifestyle associated with this level of wealth includes owning substantial homes, sometimes multiple properties, high-end vehicles, and access to exclusive services and leisure activities.
- Other Areas: In contrast, many areas in Greater Western Sydney or certain outer suburbs have significantly lower average incomes and property values. This creates a visible economic divide across the city.
Employment Sectors with High Incomes
Certain industries in Sydney are known for offering higher earning potential. These include:
- Finance and Insurance Services: Many major banks and financial institutions have their headquarters in Sydney, offering high-paying roles.
- Professional, Scientific, and Technical Services: This includes jobs in law, accounting, consulting, and technology, which command high salaries.
- Healthcare: Senior medical professionals earn significant incomes.
- Construction: Management and specialised roles in the large construction industry can be very well-paid.
In summary, Sydney has a workforce with relatively high incomes by global standards, particularly in professional sectors. However, the city’s extremely high cost of living, driven largely by housing prices, means that a high income is often necessary just to live comfortably, and there are significant differences in wealth and income levels across the city’s different regions.