- Saving for a house deposit could take on average 20 years in some suburbs
- Finder senior editor of money Sarah Megginson said, "having a realistic budget and starting to save early on, even if it’s just $100 a month, will put you on the right track.”
- Ms Megginson said inner city suburbs can be pricey as the demand there is high.
Saving for a house deposit could take on average 8 years for Sydneysiders and up to 20 years in some suburbs, according to new research by Finder.
The research analysed property prices and incomes in each of Australia’s capital cities, and in Australia’s LGAs, to determine where saving for a home is the most challenging.
Finder senior editor of money Sarah Megginson said Australia’s property prices had grown at a faster rate than incomes over the past few decades.
“In some suburbs, this contrast is more stark than others.
“It’s mind-boggling just how long it could take homebuyers to save up for a deposit in some of the country’s pricier suburbs.”
Ms Megginson said home buyers shouldn’t feel discouraged.
“Having a realistic budget and starting to save early on, even if it’s just $100 a month, will put you on the right track.”
Ms Megginson said it’s important to have an open mind and to look at all the schemes, grants and incentives that can help you buy a home.
“There are tens of thousands of dollars on offer from various government programs.
“Your first home is probably not going to be your dream home, and that’s completely normal. You can always upsize to a larger home further down the track once you’ve built up some equity.”
Average time to save a deposit by city
| Capital City | Median house/unit price | Deposit (20%) | Average weekly household income | Years taken if saving 20% of income |
| Sydney | $907,500 | $181,500 | $2,117 | 8 years and 2 months |
| Melbourne | $715,625 | $143,125 | $1,885 | 7 years and 4 months |
| Hobart | $515,000 | $103,000 | $1,555 | 6 years and 4 months |
| Adelaide | $452,500 | $90,500 | $1,600 | 5 years and 5 months |
| Canberra | $635,750 | $127,150 | $2,344 | 5 years and 2 months |
| Perth | $529,000 | $105,800 | $1,972 | 5 years and 1 month |
| Brisbane | $505,000 | $101,000 | $1,887 | 5 years and 1 month |
| Darwin | $440,000 | $88,000 | $2,410 | 3 years and 6 months |
| All cities | $591,450 | $118,290 | $1,971 | 5 years and 10 months |
Source: ABS, CoreLogic, Finder
Sydney was the most expensive, with residents needing to spend just over 8 years on average to save for a home deposit.
Melbourne came in second place, with the average time to save a deposit taking 7 years and 4 months, followed by Hobart (6 years and 4 months) and Adelaide (5 years and 5 months).
Darwin came in as the most affordable capital city, with residents needing only 3 years and 6 months to save for a home.
The LGAs where it takes the longest to save for a deposit
| State | LGA | Median house/unit price | Deposit (20%) | Average weekly household income | Years taken if saving 20% of income |
| NSW | Woollahra | $2,950,000 | $590,000 | $3,104 | 18 years and 2 months |
| NSW | Mosman | $2,885,750 | $577,150 | $3,063 | 18 years and 1 month |
| NSW | Waverly | $2,345,000 | $469,000 | $2,742 | 16 years and 5 months |
| NSW | Hunters Hill | $2,310,000 | $462,000 | $2,691 | 15 years |
| NSW | North Sydney | $2,152,500 | $430,500 | $2,776 | 14 years and 11 months |
| NSW | Randwick | $1,779,750 | $355,950 | $2,299 | 14 years and 11 months |
| NSW | Strathfield | $1,662,500 | $332,500 | $2,178 | 14 years and 7 months |
| NSW | Byron | $1,108,750 | $221,750 | $1,497 | 14 years and 2 months |
| NSW | Willoughby | $1,940,000 | $388,000 | $2,719 | 13 years and 9 months |
| NSW | Burwood | $1,335,000 | $267,000 | $1,941 | 13 years and 2 months |
Source: ABS, CoreLogic, and Finder
The top LGAs where it takes the longest to save based on the average household income are in and around Sydney.
Ms Megginson said inner city suburbs, particularly in Sydney and Melbourne, can be pricey as the demand there is high.
“If you’re not willing to compromise on location, make sure you’re keeping realistic expectations when it comes to size, style and the number of bedrooms and bathrooms.”
LGAs where it takes the least amount of time to save for a deposit
| State | LGA | Median house/unit prince | Deposit (20%) | Average weekly household income | Years taken if saving 20% of income |
| NSW | Cobar | $155,000 | $31,000 | $1,748 | 1 year and 8 months |
| TAS | West Coast | $112,750 | $22,550 | $1,258 | 1 year and 9 months |
| NSW | Broken Hill | $130,000 | $26,000 | $1,334 | 1 year and 10 months |
| QLD | Isaac | $226,250 | $45,250 | $2,292 | 1 year and 11 months |
| QLD | Banana | $190,000 | $38,000 | $1,845 | 1 year and 11 months |
| WA | Port Hedland | $298,250 | $59,650 | $2,796 | 2 years |
| QLD | Central Highlands | $226,375 | $45,275 | $1,996 | 2 years and 1 month |
| VIC | Yarriambiack | $135,000 | $27,000 | $1,186 | 2 years and 1month |
| SA | Wattle Range | $156,913 | $31,383 | $1,357 | 2 years and 2 months |
| WA | Kalgoorlie/Boulder | $265,000 | $53,000 | $2,249 | 2 years and 2 months |
Source: ABS, CoreLogic, and Finder
