How long it now takes first-home buyers to save a deposit
New analysis from Domain shows housing affordability deteriorated last year despite three interest rate cuts – because rising prices for entry-level homes offset the benefits of lower mortgage rates and government support programs.
This reflects a broader shift in Australia’s housing market. While interest rates have traditionally been the biggest factor affecting affordability, Domain’s research suggests tight housing supply and rising prices are now playing a larger role.
As a result, getting into the market today depends on more than just your ability to save.
Deposit timelines across the capital cities
Domain’s analysis assumed a typical first-home buyer was a couple aged 25–34 purchasing an entry-level property with a 20% deposit. Based on those assumptions, the time required to save a deposit increased in all eight capital cities for houses during 2025, and in six cities for units.
Sydney remains the most challenging market. Domain estimates it now takes 7 years and 7 months to save a 20% deposit for an entry-level house, although buyers targeting units could reach that goal in 4 years and 5 months.
In Melbourne, it takes about 5 years and 3 months to save a house deposit and 3 years and 4 months for a unit. Brisbane buyers face a longer journey, needing 6 years and 3 months for houses and 4 years and 11 months for units.
Adelaide buyers typically require 5 years and 7 months to save a house deposit and around 4 years for a unit. In Perth, the timeline is 5 years and 4 months for houses and 3 years and 10 months for units.
Among the smaller capitals, Hobart buyers need about 5 years for a house deposit and 3 years and 10 months for a unit. In Canberra, the figures are 5 years and 1 month for houses and 2 years and 10 months for units. Darwin remains the most accessible market, where saving a deposit typically takes 4 years for houses and 2 years and 7 months for units.
How first home buyers can still enter the market
While these figures highlight the challenge facing first-home buyers, a 20% deposit is not the only pathway into the market.
Many buyers enter sooner by purchasing a unit instead of a house, targeting more affordable suburbs or using government initiatives designed to help first-home buyers. Some schemes allow eligible buyers to purchase with a smaller deposit while avoiding lenders mortgage insurance.
With property prices and lending policies constantly evolving, understanding your options can make a significant difference to how quickly you enter the market.
Get in touch to discuss the different pathways available and how you could take your first step into the property market sooner.