This FACT indicates the average real house price in each city by 10 kilometres from the CBD. Real pricing is defined as being adjusted for inflation. House prices in Australian cities have increased faster than any other major economy in the world. However, due to comparatively low interest rates and higher wages, living in Australia is still relatively affordable for residents. Living close to the CBD is seen as more desirable to most people due to lower travel costs for work and easy access to the action in each city. Consequently, due to high demand, houses closer to the CBD have much higher costs. The city with the highest average cost is Sydney. The city with the lowest average cost is Hobart. Data is indicated in thousands.