Already feeling the full brunt of the state’s housing crisis, hopeful homebuyers have been dealt another blow, with a new report showing the amount of time South Australians needed to scrape together a house deposit is the largest in the nation.
According to the PropTrack CommBank First-Home Buyer Report 2025, an average-income household in SA would need to save for the equivalent of 7.2 years to have enough for a 20 per cent deposit on a median-priced home.
The next closest was New South Wales, where buyers need to save for the equivalent of 6.9 years, while the national average was 5.9 years.
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Western Australian buyers were the quickest to save a deposit at just 4.5 years.
The report revealed a 10 per cent deposit or less was the preferred way to buy for the majority of buyers – almost 30 per cent – with about one third of all first homebuyers aged between 30 and 34.
According to the report, the top five areas searched for by first homebuyers were Salisbury, Playford, Port Adelaide – East, Marion and Onkaparinga.
Edge Realty principal Mike Lao, who sells in the northern suburbs – which includes the Salisbury and Playford areas identified in the report – said the region offered fantastic opportunities for first homebuyers.
“There are some great options here in terms of new stock, due to the State Government’s push for more housing, and these are supported by some fantastic infrastructure, so it really does offer a great lifestyle as well,” he said.
“Those looking for an even more affordable option can target some of the older existing stock here, which, although potentially lacking some of the bells and whistles of a new home, gives you a foot in the door and that same great lifestyle.
“The North-South Corridor has also made the city so much more accessible to northern residents that it’s no longer really a second option but something they are actively seeking out in the first instance.”
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It also showed that housing affordability for SA’s first-timers was at its lowest level in PropTrack’s history, with a prospective first-home buyer household 25-39, currently renting and earning a typical income of $108,000 able to afford just 14 per cent of homes sold in the past year.
Despite this, the report showed there are more first homebuyers entering the market than before the pandemic, and more than in the early-to-mid 2010s, despite being significantly lower than peaks seen in 2008/9 and 2020/21.
And more could join yet, with the report revealing changes to the Federal Government’s Home Guarantee Scheme from October 1 would take the number of homes accessible to first-timers from the current 13 per cent of all homes currently capped at $600,000, to 60 per cent of all homes up to the raised $900,000 cap.
REA Group senior economist Angus Moore said saving for a deposit, record low housing affordability and tough mortgage serviceability were key hurdles for first-home buyers.
“Despite these conditions, first-home buyers are finding ways to enter the market,” he said.
“Recent government policies, low deposit loans and Lenders Mortgage Insurance are key
enablers helping first-home buyers purchase.
“Many also seek homes in more affordable areas or purchase semi-detached homes or units to overcome affordability challenges.
“The good news for first-home buyers is that conditions are improving.
“Interest rates have already fallen from their peak, and further cuts are expected.
“While home prices are rising, lower mortgage rates will likely help put more homes within reach of first-home buyers.”
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