Australian property market: Deposit savings and affordability trends

Saving for a property deposit remains a significant financial challenge for Australians. According to Domain’s First Home Buyer Report 2026, a couple aged 25 to 34 requires approximately five years to save a 20% deposit for an entry-priced house, while saving for an entry-priced unit takes roughly three years and six months.

In Melbourne, median dwelling values were recorded at $786,718 as of August 31, 2026. While house values saw a 4.7% decrease over the preceding 12 months, costs vary significantly by location and property type. For instance, median values in Wyndham were $685,275, compared to $920,432 for houses generally.

While a 20% deposit is traditionally recommended to avoid Lenders Mortgage Insurance (LMI), eligible first-home buyers may access the market with a 5% deposit through various government schemes or family guarantees. Buyers must also account for additional costs such as stamp duty and land transfer fees, which are typically paid from personal funds at settlement.