‘Quite significant’ rise in deposit hurdle for Melbourne first-home buyers

It now takes first-home buyers an average of six years and six months to save a 20 per cent deposit for a house, new analysis from Domain Property Marketplace reveals.

Domain’s First Home Buyers Report reveals the time it takes to save for a deposit grew by six months for Melbourne buyers in 2021.

Chief of research and economics at Domain, Dr Nicola Powell, says the increase is “quite significant”.

“This isn’t your mid-priced house, this is your lower end,” she told Neil Mitchell.

Dr Powell says analysis of average incomes of 25 to 34-year-olds reveals “savings plans need to be enacted almost as soon as you come out of university to be able to keep up with the market”.

But it’s not all bad news for first time property buyers. The time to save for an entry-level unit, however, has fallen by a month in the past year to four years and four months.

Press PLAY below to hear more about the hurdles first-home buyers face