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Time to save a deposit jumps 11 months in a year

24 March 2022 6:14AM

It takes an average of five years and eight months for first home buyers to save a 20 per cent deposit for a house purchase, according to the latest Domain First Home Buyer Report. The real estate site said the average time needed to save a deposit had increased by 11 months over the past year. The estimate, prepared by Australian Property Monitors, assumes buyers are aged 25 to 34, are on an average wage, save 20 per cent of their post-tax income each month and receive no other financial assistance. An entry level house price of A$470,000 is used. Adjusting for prices in different cities, Domain said the average time needed to save a house deposit in Sydney is eight years and one month (up 18 months over the past year); six years and six months in Melbourne (up six months); four years and 10 months in Brisbane (up three months); four years and seven months in Adelaide (up seven months); three years and seven months in Perth (up one month); four years and three months in Darwin (up nine months); and seven years and one month in Canberra (up 18 months). The average time to save a deposit for a house purchase in a regional market rose four months over the past year to three years and 10 months. The average time to save for a unit in a capital city rose three months over the year to three years and six months and in a regional city it rose five months to three years. Domain said the savings task had been made harder by rising dwelling prices, rising living costs and low wage growth.

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