How young Australians are navigating housing affordability challenges

For many young Australians, owning a home can feel more like a distant dream than a realistic goal. Rising living costs, strong property price growth and slow wage increases have put real pressure on people trying to buy their first home, especially while juggling rent, bills and everyday expenses.

Recent research by Deloitte Access Economics highlights just how tough the landscape has become. Average home prices increased by 67% in the decade to 2023, while average weekly incomes for Australians aged 21 to 34 grew by just 20% over the same period. That gap alone explains why so many first home buyers are finding it hard to get ahead.

The flow-on effect is clear. Big life milestones like leaving the family home and starting a family are happening later. In 1981, around a third of 20 to 24-year-olds lived with their parents. By 2021, that number had jumped to almost 64%. Today, around 40% of Australians aged 25 to 34 rely on some form of family support to enter the property market.

While affordability is a major challenge, I always remind Perth first home buyers that getting into the market isn’t impossible. With the right strategy, support and guidance, home ownership can still be achievable. Below are some of the key options that may help you buy your first home sooner.

The 5% Deposit Scheme

The 5% Deposit Scheme allows eligible first home buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance.

There are property price caps, but no income limits and no cap on the number of places available. Since launching in 2020, this scheme has helped hundreds of thousands of Australians take their first step onto the property ladder.

For many Perth buyers, this can signicantly reduce the time it takes to save a deposit.

First Home Super Saver Scheme

The First Home Super Saver Scheme lets you save part of your first home deposit through your superannuation.

By making voluntary contributions to your super, you can take advantage of lower tax rates and potentially grow your savings faster. When you’re ready to buy, you can withdraw your contributions and associated earnings to put towards your deposit.

This option works best with forward planning, but it can be a powerful tool when used correctly.

Support from family

Family support continues to play a big role in helping first home buyers get ahead. This can take several forms, including:

• A cash gift towards your deposit
• A private loan with agreed repayment terms
• A guarantor loan using a parent’s home equity
• Joint ownership or accessing equity through refinancing

Each option has benefits and risks, so it’s important that everything is clearly documented and that everyone involved understands the implications.

Ready to take the next step?

Buying your first home can feel overwhelming, but you don’t have to navigate it alone. As a Perth mortgage broker, my role is to help you understand your borrowing options, government schemes and loan structures, so you can move forward with confidence.

If you’re ready to start planning your path into home ownership, get in touch and let’s chat through your finance questions. With the right advice, your first home may be closer than you think.