Average house deposit hits $120,000: Finder First Home Buyer Report 2022
The average home deposit has reached new highs, with many first home buyers struggling to come up with the cash, according to new research by Finder.
According to ABS data analysed in Finder's First Home Buyer Report 2022, the average 20% deposit size has reached a whopping $119,560 – almost a third more than Australia's average full-time salary of $90,916. The report surveyed 1,001 first home buyers in Australia.
A surge in property prices in 2021 led to the rise, with the average first home buyer deposit having increased by $11,700 over the year to March 2022 – equivalent to an 11% increase, according to ABS figures.
The Finder research found it takes the average buyer 2 to 5 years to save that pot of cash.
More than a third (36%) of first home buyers took 5 years or more to save for a deposit.
Nearly 1 in 10 first home buyers (9%) required 10 years or more to save enough money for a deposit, which is a slight decline from 11% last year.
A further 25% need between 5 and 10 years to save, while just 6% are able to save in less than 12 months.
Graham Cooke, head of consumer research at Finder, said many first-time buyers can't afford to pay up such a substantial amount.
"The recent house price boom combined with the increased deposit requirement is making it tough for first home buyers to infiltrate the market.
"Saving up to buy your first home has become a decade-long exercise for some people.
"Getting on the property ladder is becoming out of reach for many with affordability deteriorating."
Three-quarters (75%) of first home buyers paid or are planning to pay a deposit of less than 20%.
He urged wannabe home buyers to supercharge their savings.
"Look for ways to stretch your dollar even further.
"Also remember that, depending on your state, you will want to calculate your stamp duty too. This usually has to be paid for outside of your home loan," Cooke said.
|How much deposit did you/will you (and your co-buyers) put down on your property?|
|Less than 5%||4%|
|More than 20%||9%|
|Source: Finder First Home Buyer Report 2022|