A new report has revealed that a young couple in Sydney would need to save for more than eight years on average for a 20% security deposit in the city.
The report released by Domain on Wednesday says a young, middle-income couple would need to spend eight years and a month to reach a 20% down payment on a home worth $900,000.
This savings effort has increased by 18 months since last year and is almost twice as long as the time it would take to secure a deposit for a house in some other capitals.
Watch the latest news on Channel 7 or stream for free on 7plus >>
Under the same circumstances in Brisbane, for example, it would take a couple four years and 10 months to save.
In Canberra, the country’s second most expensive capital, a couple would need to save for seven years and a month.
Melbourne residents should save for six and a half years.
Perth remains the best city for first-time homebuyers looking for a home, with the fastest saving time at three years and seven months for an entry-level home, less than half the time that it would take to Sydney.
In Sydney’s most expensive areas, such as the city’s north-eastern suburbs, it would take couples a jaw-dropping 29 years to put together a deposit, while in the Manly area it would take 27 years before a house can be reached.
Unit deposits in these areas would take between nine and 11 years to be spared, respectively.
Meanwhile, those looking for an apartment in Sydney are expected to save for five years and six months, an increase of one month from the previous year, for a unit worth around $618,500.
The report also revealed that house prices in the combined capitals have risen by 101% over the past decade and unit prices by 52%.
In Sydney and Melbourne, house prices increased by 153% and 107% respectively.
Domain’s head of research and economics Nicola Powell said it’s becoming increasingly difficult for first-time homebuyers to save a down payment.
“First-time home buyers face a growing financial hurdle when it comes to saving a down payment, and that’s becoming increasingly daunting in the face of rising cost of living, low rising wages, low savings rates and rapidly rising house prices,” said Dr. Powell.
In Sydney’s more affordable suburbs such as St Marys or Mount Druitt, it would still take nearly six years to save a 20% down payment.
For an apartment in these suburbs, couples would still need to save for more than three years.