A recent report from Domain highlights the escalating issue of first-home buyer affordability in Australia, underscoring that it is no longer confined to Sydney. The study reveals that a young couple aspiring to purchase a starter home in a major city now requires an average savings period of five years to accumulate a 20 percent deposit. The past five years have seen a staggering 68 percent increase in entry-level house prices and a 30 percent spike in unit prices, starkly contrasting with the 21 percent growth in wages over the same period.

This dramatic rise in property prices has placed immense financial strain on young Australians, as the average mortgage repayment for an entry-level house now consumes nearly half of a couple's combined income, which has increased by 24 percent in just five years. Experts from Domain, including researcher Nicola Powell, are sounding alarms about the widening affordability gap that threatens to render homeownership unattainable for many. This trend suggests a systemic issue in the Australian real estate market, impacting not just the capital's traditionally expensive sector but also cities across the country.

To address this growing crisis, Powell advocates for significant reforms, including alterations to stamp duty and incentives to boost the availability of affordable housing. Without intervention, the dream of homeownership is at risk of slipping away for an entire generation. The findings serve as a critical call to action for policymakers to develop strategies that can alleviate the burden faced by first-home buyers in Australia, emphasizing the need for sustainable housing solutions that cater to the needs of the youth population.