Strong gains in property prices since 2008 and relatively low wages growth over the period are blocking first-home buyers out of the market, according to new research by CoreLogic.

“If in December 2008 you owned a home worth $500,000 it is now worth $758,418," said Cameron Kusher of CoreLogic. 

“Looking at this same calculation across each capital city, the increases in value over that time based on a $500,000 home owned in December 2008 are: Sydney $400,825, Melbourne $338,866, Brisbane $73,417, Adelaide $81,029, Perth $64,096, Hobart $11,263, Darwin $109,293 and Canberra $126,262,” he said.

While the data shows that property prices have risen strongly, growth in inflation and wages has been relatively modest.

“Although combined capital city home values have increased by 51.7% between December 2008 and April 2016, inflation has increased by a significantly lower 17.1% over the period,” said Kusher.

Though wages rose during the mining boom, “wages are increasing at a much slower pace than home values,” said Kusher. 

Kusher said it's hard for first-home buyers to compete with investors and upgraders, who have already built up significant equity.

Kusher said the answer could be to move out of the capital cities, particularly Sydney and Melbourne.

 “The simple answer,” said Kusher, “is to look to buy properties outside of these cities however, that may seem a little simplistic given jobs creation has not been as strong outside of Sydney and Melbourne."