The Future of First-Home Buyers: Unlocking the Great Australian Dream in 2025

For decades, Australians have been told that owning a home is the ultimate financial milestone—the cornerstone of wealth creation and security.

But in today’s market, is that dream becoming unattainable for a growing number of first-home buyers?

According to Domain’s First Home Buyer Report 2025, the road to homeownership remains steep, despite some marginal improvements in affordability.

The latest data reveals that while saving for a deposit has become slightly easier in select locations, mortgage stress has become more widespread across the country.

So, where does that leave aspiring buyers?

Is there still a viable path onto the property ladder, or are we witnessing a fundamental shift in what homeownership looks like in Australia?

The gap between wages and property prices is growing

One of the most striking findings from the report is how rapidly property prices have outpaced wage growth.

Domain’s Chief of Research and Economics, Dr. Nicola Powell, summarised it best:

“In the past five years, entry house prices have increased 58%, while unit prices have risen by 27%.

Meanwhile, inflation surged 20%, and wages only grew by 15%.

This shows the growing gap between earnings and property costs, making it harder for first-home buyers to get into the market.”

In other words, property values have skyrocketed, while incomes have barely kept up with inflation.

The result?

Many first-home buyers are finding it increasingly difficult to save for a deposit, let alone afford mortgage repayments.

For instance:

• The time to save for a 20% deposit on an entry-priced house in Sydney is now 6 years and 9 months—the longest in the country.
• In Melbourne, it takes 5 years and 1 month, while Brisbane and Adelaide have both seen their saving times increase due to rising property prices outpacing wage growth.
• Darwin remains the fastest path to homeownership, requiring just 3 years and 5 months for a house and 2 years and 1 month for a unit.

Table 1. The time to save for a 20% deposit on an entry-priced home for a couple aged 25-34.

Area	Time to save – Entry house		Time to save – Entry unit
	Entry house	Annual Change (months)	Entry unit	Annual Change (months)
Sydney	6y 9m	+1m	4y 4m	-2m
Melbourne	5y 1m	-3m	3y 5m	-2m
Brisbane	5y 6m	+4m	4y 2m	+5m
Adelaide	5y 6m	+5m	3y 9m	+4m
Perth	4y 6m	+8m	2y 11m	+6m
Hobart	4y 11m	+2m	3y 7m	-3m
Darwin	3y 5m	-2m	2y 1m	-3m
Canberra	5y 7m	-1m	3y 3m	-3m
Combined capitals	5y 1m	+1m	3y 5m	-2m
Combined regionals	4y	+2m	3y 2m	+1m
Australia	4y 10m	+1m	3y 4m	-1m
y = year, m = month.

So, while some cities remain more accessible, the trend is clear: first-home buyers need to save longer and borrow more to secure their place in the market.

Units: a faster (but not stress-free) path to homeownership

One of the report’s more optimistic takeaways is that units continue to offer a much faster route to homeownership compared to houses.

On average, buying an entry-level unit shaves almost two years off the time required to save for a deposit.

Table 2. Entry house and unit prices

Area	Entry houses			Entry units
	Entry price	Annual change	5-year change	Entry price	Annual change	5-year change
Sydney	$990,000	7.6% ($70,000)	44.9% ($307,000)	$615,000	2.5% ($15,000)	3.4% ($20,000)
Melbourne	$670,000	0% ($0)	11.7% ($70,000)	$437,500	-1.2% (-$5500)	-2.8% (-$12,500)
Brisbane	$735,000	14.8% ($95,000)	69.0% ($300,000) </