Extended Deposit Saving Periods Challenge First Home Buyers

Rising Property Prices Outpace Wage Growth, Prolonging Savings Timelines

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According to Domain's First Home Buyer Report 2026, aspiring homeowners are now facing longer periods to save for a deposit, as property prices continue to rise faster than wage growth.

Over the past five years, entry-level house prices have surged by 68%, while wages have only increased by 21%.

This disparity means that in cities like Sydney, it now takes approximately seven years and seven months to save a 20% deposit for an entry-level house. In contrast, Darwin offers a more favorable scenario, with a saving period of about four years.

For first home buyers, this trend highlights the necessity of strategic financial planning and exploring alternative pathways to homeownership, such as government assistance programs or considering properties in more affordable regions.

Published:Thursday, 23rd Apr 2026
Author: Paige Estritori

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Knowledgebase

Amortization:
The process of gradually paying off a debt over a period of time through regular payments.

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