Domain's new First Home Buyer Report has found that time to save for a unit deposit has dropped by two months across Australia’s capital cities while for houses, it’s increased by one month.
Nationally, it takes around 20 months less to save for an entry-price unit deposit than a house with the difference even greater in Sydney (two year and five months) and Canberra (two years and four months).
The report focuses on data for 25-34-year-old couples on average wages, taking into account entry level house and unit prices and mortgage affordability.
It found saving for a 20% deposit as a first home buyer varies greatly across cities.
The time to save a 20% deposit on an entry priced home for a couple 25-34
Source: Domain First Home Buyer Report 2025
Sydney toughest for first home savers
In a surprise to no one, saving for a house in Sydney represents the longest path to home ownership while a unit in Darwin offers the quickest.
Although the time to save for a unit deposit decreased nationally, it rose in the high-growth cities of Brisbane, Adelaide, and Perth as did the time to save for a house.
This was attributed to the double-digit growth in property prices in those cities outpacing wage growth and higher savings interest rates.
Melbourne is the only capital city where the time to save for both an entry-priced house or unit deposit has fallen over the past five years.
As a result, Victoria now leads the country in first homeowner participation in the property market.
First home buyers still up against it
Domain’s chief of research and economics Nicola Powell said the report shows first home buyers are still facing big challenges in Australia.
“In the past five years, entry house prices have increased 58% while unit prices have risen by 27%,” she said.
“Meanwhile, inflation surged 20% and wages only grew by 15% [so] this shows the growing gap between earnings and property costs.”
But there was some good news.
Unit savings time in Sydney falls longer-term
While Sydney remains the toughest city for first home buyers overall, it’s now 15 months faster to save for an entry level unit compared to five years ago.
Dr Powell put this down to higher wages, better interest rates on savings accounts, and more stable unit prices.
“[But] on the flip side, Brisbane, Adelaide and Perth have seen longer saving times for both units and houses because prices have risen faster than wages and savings rates," she said.
Darwin remains the top city for first home buyers with the quickest path to homeownership – three years and five months for an entry level house deposit, and two years and one month for a unit.
That’s half the time it takes to save for a Sydney unit deposit.
Shortest save time for each city
The report also ran the data on the localities with the shortest save times for an entry level house and unit in each capital city.
| City | Area for House | Area for Unit |
| Sydney |
Wyong (5y, 11m) |
Mt Druitt (3 y 2m) |
| Melbourne |
Melton-Bacchus March (4y, 3m) |
Essendon (2 y 9m) |
| Brisbane |
Cleveland-Stradbroke (4y 8m) |
Springwood-Kingston (3y 5m) |
| Perth |
Perth City (3y 7m) |
Perth City (2y 7 m) |
| Adelaide |
Playford (4y 8m) |
Unley (3y 5m) |
| Canberra |
Molonglo (4y 9m) |
Woden Valley (2y 10m) |
| Darwin |
Litchfield (3y 3m) |
n/a |
| Hobart |
Brighton (3y 9m) |
n/a |
Source: Domain (Time to save for a 20% deposit on an entry priced house for couple 25-34 by area. Hobart & Darwin unit data excluded because of low sales volumes.)
Call for coordinated approach to affordability
Dr Powell said the differences highlight the huge gap in affordability between the cities.
“[It’s] clear that coordinated government action is needed to tackle Australia’s housing shortage,” she said.
While she said the federal government’s National Housing Accord, which aims to build 1.2 million homes in the next five years, is “a step in the right direction”, it’s crucial for all levels of government to work with industry to ensure there is enough affordable housing in the future.
Advertisement
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | Rate drops by 0.25% on 4th March |
| Promoted | Disclosure | |||||||||
5.74% p.a. | 5.65% p.a. | $2,915 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure |
Image by Ketut Subiyanto via Pexels
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Brooke Cooper
Alex Brewster
