Domain and Unloan release groundbreaking first home buyer report for 2024

A joint report by Domain and Unloan has revealed significant insights for first home buyers in Australia, indicating that while the period required to save for a home has decreased, increased mortgage repayments present a new challenge. The 2024 First-Home Buyer Report highlights the complex landscape faced by those attempting to enter the property market, amid surging interest rates.

According to the report, Australians can now save for a 20% deposit on an entry-price house two months faster than in previous years. This acceleration is attributed to high interest rates that have the potential to boost savings, provided that individuals are able to save consistently. However, the report also notes a significant catch: once homeownership is achieved, buyers are likely to face increased mortgage repayments, leading to potential mortgage stress.

Dr Nicola Powell, Chief of Research and Economics at Domain, and Dan Oertli, CEO of Unloan, have both commented on the findings. Oertli emphasized the purpose behind the collaboration, stating, “We want to see more young Australians achieve their dream of owning a first home. Buying a home is one of the biggest purchases most Australians will ever make – and knowing where to start can feel overwhelming. That’s why we’ve collaborated with Domain to share some insights to help first-home buyers enter the market with more confidence.”

Powell further explained the dynamics at play, noting, “The current market still poses significant challenges for first-home buyers, given the record-high property prices and the ongoing cost-of-living crisis. While there has been a slight decrease in the time required to save compared to the previous year, it’s important to note the nuances involved.”

Mortgage serviceability has also been a topic of analysis, with the report shedding light on the financial strain experienced by first-home buyers in managing their loan repayments. Mortgage repayments on entry-level homes now consume a significant portion of household incomes, exceeding recommended thresholds and pushing more individuals towards mortgage stress.

The report suggests that this situation underscores the need for government intervention, encouraging actions that address housing undersupply and support first-home buyers. Initiatives like the Help to Buy scheme have been acknowledged for their potential, but the report advocates for more comprehensive efforts to improve affordability and accessibility.

For first-home buyers seeking to navigate the market, the report offers resources and insights into areas with the shortest saving times for a 20% deposit, along with tools to aid in the property search process. This information is aimed at providing a clearer path to homeownership in a challenging market.

For the full Domain First Home Buy Report, please visit here.