Can young Australians still buy a home? Tips to overcome affordability challenges.

Buying a home is a big dream for many young Australians, but right now, it can feel out of reach. Rising living costs, soaring property prices, and slow wage growth have made saving for a deposit harder than ever.

Research from Deloitte Access Economics paints a clear picture:

• Average home prices jumped 67% in the decade to 2023 (from $548,000 to $915,000).
• Average incomes for 21-34-year-olds grew just 20% in the same period.

This gap means major life milestones like moving out or starting a family are being delayed. In 1981, about one-third of 20-24-year-olds lived with their parents. By 2021, that number had doubled to 63.8%. Today, 40% of young Australians aged 25-34 rely on family help to buy a home.

But here’s the good news: home ownership is still possible. With the right strategies and support, you can take steps toward buying your first home sooner. Let’s explore some practical options.

Government schemes that can help

1) Help to Buy Scheme

The Help to Buy program is designed to make home ownership more affordable. The government can contribute:

• Up to 30% for existing homes
• Up to 40% for new builds

You’ll only need a 2% deposit. Applications opened on 5 December 2025, with 10,000 places available each year. Income limits apply:

• $100,000 for individuals
• $160,000 for single parents or joint applicants

2) 5% Deposit Scheme

The 5% Deposit Scheme (formerly the Home Guarantee Scheme) lets you buy with just 5% deposit and no Lenders’ Mortgage Insurance (LMI).

• Property price caps apply
• No income limits
• No cap on places

Since 2020, this scheme has helped over 248,000 Australians get into the market.

3) First Home Super Saver Scheme

This scheme allows you to save for a deposit through your superannuation, taking advantage of lower tax rates.

• Make voluntary contributions to your super fund
• Withdraw savings plus earnings when ready to buy

This can help you grow your deposit faster.

Family support options

Family assistance is another common way to enter the market. Options include:

• Cash gifts toward your deposit (with a statutory declaration)
• Private loans under a written agreement
• Acting as a guarantor, using equity as security to reduce deposit requirements
• Refinancing to unlock equity for gifting or lending
• Joint ownership, buying together

Always seek professional advice and put agreements in writing to avoid misunderstandings.

Ready to take the next step?

Buying your first home can feel overwhelming, but you don’t have to do it alone. At FinancePath, we’ll help you understand your borrowing options and create a clear plan with confidence.

Get in touch today and let’s chat about your finance questions so you can move closer to home ownership.