The property bubble in Australia is officially still swelling, according to Domain's 2026 First Home Buyers Report released this morning. Despite rate cuts and public outcry for more affordable housing — Domain reports that prices of entry-level homes have risen a further 15 percent, averaging at an extra $150,000 in cities across the nation. The exact growth varies in each city, but the data points to growth across the board. In the last year, entry-level prices rose by at least 20 percent in Brisbane, Adelaide, Perth and Darwin — and Sydney, which saw an annual growth of 15 percent, remains the only city where an entry-level house costs seven figures, $1,150,000 to be exact. In the last five years, it's Adelaide that's seen entry-level house prices rise the most, growing by a whopping 159.2 percent to the current average price of $720,000. [caption id="attachment_1077354" align="aligncenter" width="1920"] Ben Goode via iStock[/caption] On the apartments front, prices rose over the last year in every city except one, with the most growth (20 percent or more) recorded in Perth, Adelaide and Darwin. The only city where entry-level unit prices actually fell was Canberra, where an entry-level unit is almost $15,300 cheaper than it was this time last year. The report also details how long it will take buyers to save the funds to meet the cost of a home, or at least a 20 percent deposit. Unsurprisingly, Sydney has the highest figure there, where a 20 percent deposit will cost buyers 7.7 years of saving, followed by Brisbane for 6.3 and Adelaide at 5.7. It averages out to 5 years across Australia, but it's lowest in Darwin, where buyers need only save for 2.7 years [caption id="attachment_877221" align="aligncenter" width="1920"] NeoPhoto via iStock[/caption] When saving for a unit deposit, it's much lower. In Sydney, that will set you back just over three years, and no longer than two years in any other capital city — a figure that's fallen over the last five years in Sydney, Melbourne and Canberra. If you thought prices end at the first purchase, the report also reveals that mortgage rates have risen in turn, with all capital city mortgage prices exceeding the 30 percent 'stress threshold', determined by the household income required to pay it off. In Sydney, the average repayments on an entry-level home consume 68 percent of household income, followed by Brisbane at 50 percent and Adelaide at 44 percent. Rates improved in Melbourne, Hobart and Canberra, where rates consume a mere 39 to 41 percent of household income. But, averaging all the capitals, mortgages demand 24 percent more income than they did five years ago. [caption id="attachment_984500" align="aligncenter" width="1920"] Brisbane City Council[/caption] In terms of solutions to the issue, it's not an easy fix. Domain reports that the federal government's Help to Buy scheme is an effective aid for eligible applicants (individuals earning $100,000 or less), as is the 5% Deposit Scheme, which lowers the minimum deposit for eligible first-time buyers. The main finding? Rates don't match wages, and first-home buyers are facing more constraints than ever before. Read the 2026 First Home Buyer Report in full here.
