Purchasing a home has become a distant dream for Australians under 30, due to the rising cost of living and soaring house prices.
Catalyst Advisers credit analyst Abbey Wyatt explained that even with government schemes, many young people are still struggling to save a sufficient deposit.
“With the current cost of living, many young people are struggling to save while also managing rent, study, and everyday expenses, even under schemes like the First Home Guarantee where a 5 per cent deposit is possible,” Miss Wyatt said.
“Without access to these schemes, the traditional 20 per cent deposit plus stamp duty makes entry into the market significantly more difficult.”
New South Wales is Australia’s least affordable state, and the Real Estate Institute of Australia reported that in 2025, families were required to devote 55.1 per cent of their income to loan repayments.
Nowra first-home buyer Taylah Fenning, 26, has saved half her income for more than five years and was still forced to look outside her local area to find a property that she could afford.
“I’ve looked about an hour and a half away from where I am, in Nowra, where it’s somewhat more affordable,” Miss Fenning said.
“But even then, since I started looking, prices have been slowly going up there as well.”
Not only does being on a single income affect the ability to save a sufficient amount, but it also reduces borrowing power when it comes to securing a home loan.
Miss Fenning also struggled with being outbid by investors and dual-income buyers.
“The hardest part was making offers on places and getting outbid or finding something that would fit in my budget and actually getting an offer accepted,” Miss Fenning said.
Ms Wyatt urged that while younger applicants aren’t typically rejected outright from receiving home loans, their borrowing capacity is limited due to higher levels of personal debt and insufficient income relative to property prices.
“Common factors include car loans, personal loans, credit card debt, and larger HECS/HELP balances, all of which reduce serviceability,” Miss Wyatt said.
“In many cases, single-income home ownership involves prioritising savings over discretionary spending such as travel or lifestyle expenses and focusing on building stable employment and income growth over time.”
Miss Wyatt said that while purchasing a home on a single income is still realistic, it can be more challenging, requiring more financial discipline and lifestyle trade-offs.
Additional reporting: Bella McCann
Image: Getty Images
