Finance Australia :: News
SHARE

Share this news item!

Declining Housing Affordability Amid Increased First-Home Buyer Demand

Understanding the Financial Strain on Australian Families

Declining Housing Affordability Amid Increased First-Home Buyer Demand?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Real Estate Institute of Australia (REIA) has released a report indicating a decline in housing affordability during the December 2025 quarter.
The expansion of the 5% deposit scheme has led to a surge in first-home buyer activity, resulting in higher average loan sizes and increased financial strain on households.

According to the REIA's Housing Affordability Report, average home loan repayments now account for 49.2% of median family income, marking a 2.2 percentage point deterioration over the quarter. This trend suggests that, despite the scheme's intention to facilitate homeownership, it has also contributed to larger loan amounts and higher repayment burdens.

For first-home buyers, this means that while the initial barrier to entry may be lower due to the reduced deposit requirement, the ongoing financial commitment is substantial. Prospective buyers should carefully assess their financial capacity, considering not only the deposit but also the long-term implications of larger loan repayments on their household budgets.

In light of these developments, it's crucial for first-home buyers to explore various financing options, seek professional financial advice, and develop comprehensive budgeting plans to ensure sustainable homeownership.

Published:Friday, 1st May 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Inflation Surges to 4.8% in March 2026 Amid Global Tensions
Inflation Surges to 4.8% in March 2026 Amid Global Tensions
01 May 2026: Paige Estritori
In March 2026, Australia's inflation rate escalated to 4.8%, marking its highest level since September 2023. This surge is primarily attributed to a significant increase in fuel prices, a consequence of ongoing conflicts in the Middle East. The Australian Bureau of Statistics (ABS) is set to release detailed data confirming this uptick, which has raised concerns among policymakers and consumers alike. - read more
IFM Investors Proposes $6.9 Billion Acquisition of Atlas Arteria
IFM Investors Proposes $6.9 Billion Acquisition of Atlas Arteria
01 May 2026: Paige Estritori
IFM Investors, a prominent Australian superannuation fund manager, has initiated a $6.9 billion takeover bid for Atlas Arteria, a global toll road operator listed on the ASX. The offer stands at $4.47 per security, with a conditional increase to $5.10 if IFM secures at least 45% of Atlas Arteria's shares before the offer's closure. Currently, IFM holds approximately 34.5% of the company's shares. - read more
Australian Property Market Achieves 9.9% Annual Growth in 2026
Australian Property Market Achieves 9.9% Annual Growth in 2026
01 May 2026: Paige Estritori
As of March 2026, Australia's property market has experienced a 9.9% annual growth, according to data from Cotality's Home Value Index. This marks the fastest annual growth rate since June 2022. Despite this national upswing, regional markets exhibit varied trends, offering a complex landscape for investors. - read more


Finance Articles

The In-Depth Guide to Boat Loans in Australia: What You Need to Know Before Diving In
The In-Depth Guide to Boat Loans in Australia: What You Need to Know Before Diving In
Australia, with its expansive coastline and spectacular waterways, naturally cultivates a rich culture of marine enthusiasts. Imagine the salty breeze on your face as you slice through waves, the call of seabirds overhead, and the freedom to explore hidden coves and beaches – this is the quintessential Australian boating lifestyle. - read more
The Road to Recovery: How to Rebuild Your Credit for Future Loans
The Road to Recovery: How to Rebuild Your Credit for Future Loans
In today’s economy, a good credit score is more than just a number—it's a pivotal element of financial health that can open doors to necessary funding when it's most needed. Whether it's for purchasing a new home, investing in a business, or obtaining personal loans, a robust credit score in Australia is your ticket to favorable interest rates and loan terms. - read more
How Your Credit Rating Impacts Your Loan Options: What You Need to Know
How Your Credit Rating Impacts Your Loan Options: What You Need to Know
A credit rating is essentially a numerical representation of your financial trustworthiness. It's like a report card for your creditworthiness, where higher scores indicate better financial habits. Lenders and financial institutions scrutinize this score when you apply for credit, serving as a primary factor in approving or denying loan applications. - read more


Free Loan Eligibility Assessment

Loan Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.


Knowledgebase
Underwater Mortgage:
A mortgage in which the balance owed on the loan is greater than the value of the property securing the loan.