Adelaide’s property market has become increasingly challenging for first-time home buyers, with new data indicating significant price growth for entry-level homes. A report by Domain shows that the cost of a typical entry-level house in the city has surged by 82.5% over the past five years, rising from $377,000 to an alarming $689,000.
This dramatic increase has extended the time it takes for couples aged 25 to 34, earning average incomes, to save for a 20% deposit. Now, it requires approximately five years and six months—a daunting prospect for many potential buyers. However, the timeframe varies by suburb; for instance, couples looking to buy in Playford need only four years and eight months, and those in Gawler require around four years and nine months. In contrast, buyers in the Adelaide Hills face a slightly longer saving period of five years and four months.
The report also highlights the financial strain on those already participating in the housing market. Mortgage repayments on entry-level homes now consume nearly 46% of the combined income of couples, significantly exceeding the 30% threshold that indicates financial stress. For entry-level units, repayment costs have also exceeded this limit, reaching 30.8% of an average couple’s income for the first time.
As the market continues to evolve, it poses significant challenges for both prospective buyers and current homeowners in Adelaide.