Australians saving for their first property are stretching their budgets further than ever, with the average first home buyer now expecting to spend $637,000 in 2025, up from $599,000 in 2024, according to new research from Resolve Finance.
But with property prices rising faster than wages, aspiring buyers are increasingly looking for creative ways to fund their first step on the property ladder. Resolve Finance Managing Director Don Crellin said the survey shows that while buyers are facing bigger financial hurdles, they are also becoming more resourceful.
“Only a year ago, first home budgets were sitting below $600,000. In some states we’ve now seen jumps of more than $70,000. Buyers aren’t walking away, instead, they’re adapting,” Mr. Crellin said.
“We’re seeing more Australians use government schemes, rely on family support, or buy with others. Some are even turning to investment properties as their first step into the market. This creativity is what’s keeping first home buying alive in a challenging environment. Some banks are coming to the creativity party by factoring future rent of spare rooms into their affordability calculations.”
First time buyer budgets in Australia’s Top 5 Cities
| Melbourne | $606k |
| Sydney | $804k |
| Brisbane | $628k |
| Perth | $614k |
| Adelaide | $599k |
Key findings from the Generation Rent Report
- Across Australia the average amount budgeted in Metro areas is $676k, versus $555k in regional Australian Cities and $493k in rural Australia.
- Government grants and schemes are becoming critical, with 36% of buyers planning to use them. In the ACT this jumps to nearly half (47%).
- Family help remains common, with 15% of buyers planning to seek financial assistance from relatives.
- Co-buying arrangements are also on the rise, with 17% intending to purchase with friends or family.
- Traditional savings are still the main pathway, with 82% putting away money for their deposit.
More Australians planning to buy despite the barriers
Despite record-high budgets, more renters are aiming to buy. The proportion planning to purchase their first property in the next two years has climbed from 42% in 2024 to 57% in 2025.
Younger buyers are also shifting strategies. Among 18–24-year-olds, 16% are planning to buy an investment property first, more than double the rate from a year ago. In NSW, almost one in five renters (17%) are taking this “rent-vesting” approach.
State-level pressures
- NSW metro buyers now need around $804,000 for their first home – up from $703,000 last year.
- Queensland metro budgets jumped the fastest, from $534,000 to $628,000.
- Even in more affordable markets such as regional Queensland, budgets rose sharply, from $497,000 to $580,000.
- In Perth where house prices have increased by 6.5% in the last 12 months and the median value sits at $831k, first time buyers are budgeting $614k.
Creative strategies essential
High rents (38%) and rising property prices (54%) remain the biggest barriers to homeownership. Cost-of-living pressures have also forced 65% of renters to delay buying.
“Today’s first home buyers are showing resilience. They’re looking at every option, from co-ownership, to government support, to alternative entry points like investment properties,” Mr. Crellin said.
“It’s no longer just about saving harder. It’s about being smarter with the resources and opportunities available and working with a broker to find solutions that ensure affordability.”
You can find this article on Financial Review here.