For decades, owning a home in Australia was considered a milestone most people achieved early in life. Today, that reality is changing — and fast.
Among Australians born in the 1940s and 1950s, around 75% owned a home before turning 40. Compare that to those born in the early-to-mid 1980s, where fewer than 60% have reached the same milestone.
The gap is even more pronounced for younger buyers. More than half of Australians born before 1960 owned a home by age 30. For those born in the 1990s, only about one in three have managed to do the same.
First-Home Buyers Are Getting Older
This shift has reshaped the profile of the typical first-home buyer.
Thirty years ago, most buyers entered the market between ages 25–29. Today, that window has shifted to 30–34 — with a growing number of buyers purchasing well into their mid-30s and even late 40s.
So what’s behind this delay?
The Real Barrier: The Deposit Gap
While lifestyle trends like longer education and delayed family planning play a role, the biggest obstacle is financial — specifically, the deposit.
Saving for a home deposit has become significantly harder over time. On average, a household earning a typical income would need nearly six years to save a 20% deposit for a median-priced home — assuming they save 20% of their pre-tax income. For many, that level of saving simply isn’t realistic.
Interestingly, mortgage affordability itself hasn’t always been the issue. While rising interest rates in 2022–2023 made repayments more difficult, affordability tends to fluctuate with interest rate cycles.
The deposit, however, is a structural challenge — and it’s only getting harder.
Government Intervention: A Step in the Right Direction
Recognizing this growing barrier, recent government initiatives have focused on lowering the deposit hurdle.
One of the most impactful changes is the expansion of the 5% Deposit Scheme, allowing eligible first-home buyers to enter the market sooner without needing a full 20% deposit — and without paying costly Lender’s Mortgage Insurance (LMI).
This matters because many buyers are already purchasing with smaller deposits. In fact, nearly 30% of first-home buyers put down 10% or less.
By easing upfront costs, the scheme helps accelerate access to homeownership — particularly for younger buyers.
Early Signs of Momentum
There are already signs that these policies are working.
Recent data shows an increase in loans to first-home buyers, reaching their highest levels since early 2022. This suggests that reduced deposit requirements are not just theoretical — they’re actively bringing more buyers into the market.
What to Watch in 2026
As we move into 2026, one key trend will be how first-home buyer demand evolves.
If government support continues to reduce entry barriers, we may see a gradual reversal of declining homeownership rates — particularly among younger Australians.
But one thing is clear: the future of homeownership will depend less on income alone and more on access — especially the ability to overcome the deposit hurdle.
