If you’ve recently browsed property listings and felt a sense of disbelief, you’re not alone. Australia’s national median dwelling value has climbed to over $922,000, up nearly 10% in just one year. In the major capitals, the figures are even more confronting: the median Sydney house price now sits at approximately $1.7 million, while Perth has crossed the $1 million threshold for the first time.
So how are Australians actually getting into the market? From a buyers agent’s perspective, it’s not about who can afford it, but more about who is positioning themselves strategically to make the most of what they have. According to PropTrack, only 14% of median income households can afford to buy the median-priced home nationally in 2026, down from 43% just three years ago. Meanwhile, the average Australian now needs 11 years to save a deposit.
Despite these barriers, people are finding ways forward, through family financial support, regional relocation, government assistance schemes, and a range of other strategies. In that sense, how are people affording houses in Australia in 2026 is no longer just a headline question, but one of the most important property conversations in the country. This article explores the approaches Australians are taking to navigate one of the most challenging property markets in the country’s history.
The State of the Market
To understand how are people affording houses in Australia in 2026, it helps to first understand just how extraordinary the market conditions have become.
Australian dwelling values have risen 9.8% over the past year, and prices are now around 55% higher than pre-COVID levels. The capital cities tell the starkest story: Sydney’s median house price sits at approximately $1.7 million, and Perth has surpassed the $1 million median for the first time. Adelaide is not far behind, with its metropolitan median approaching $1 million.
By international standards, Australia’s affordability crisis is severe. According to Demographia’s International Housing Affordability report, Australia’s national median multiple (the ratio of median house price to median household income) sits at 8.2, placing it among the worst-performing developed nations. Sydney’s ratio is even more alarming at 10.1 times the median annual household income, compared to approximately 6 times a decade ago.
Interest rates have added further pressure. The Reserve Bank of Australia raised the cash rate by 25 basis points in both February and March 2026, bringing it to 4.1%, as it moves to contain resurgent inflation. Financial markets are pricing in up to three more hikes across the remainder of 2026.
For renters, the picture is equally difficult. Australian households are now dedicating a record 33.4% of pre-tax income to rent, above the 30% housing stress threshold, while the national rental vacancy rate sits at just 1.0%.
The result is a market that, on paper, appears out of reach for most. PropTrack’s Housing Affordability Report found that only 14% of median income households can afford to buy the median-priced home nationally, down from 43% just three years ago. Yet people are still buying. The question is how.
Government Schemes & Incentives
For many Australians, government assistance schemes have become a critical part of making homeownership viable. In 2026, there are more federal and state-level programs available than ever before, and knowing how to stack them effectively can make a significant financial difference.
At the federal level, the two flagship programs are the First Home Guarantee and the Help to Buy scheme. The First Home Guarantee was significantly expanded from 1 October 2025, removing income caps entirely and lifting all limits on places. It allows eligible buyers to purchase with a deposit as low as 5%, with the government guaranteeing the shortfall to the lender, eliminating the need for Lenders Mortgage Insurance (LMI), which on a $700,000 purchase typically costs between $17,000 and $22,000.
Launched in December 2025, Help to Buy is a shared equity program under which the government contributes up to 40% of the purchase price for a new build, or up to 30% for an existing home, with buyers needing a deposit of as little as 2%. The trade-off is that the government retains a proportional share of the property, recouped upon sale. Buyers can also use the First Home Super Saver Scheme (FHSS) to build a deposit inside superannuation at a concessional tax rate, withdrawing up to $50,000 toward their purchase.
At the state level, grants and stamp duty concessions add further relief. An eligible Queensland buyer purchasing a $500,000 new home could access up to $55,778 in combined benefits through the First Home Owner Grant, a stamp duty concession, and an LMI saving via the First Home Guarantee.
That said, these schemes have real limits. In Sydney, where the median house price sits well above $1 million, property price caps can exclude large portions of the market from eligibility entirely.
These schemes can help entry, but they do not protect buyers from overpaying in competitive environments or advise people on what regions/property type can maximise their borrowing power for an investment property or home.
Family Financial Support
With government schemes alone often insufficient to bridge the affordability gap, a growing number of Australians are turning to family financial support as a pathway into the property market. This assistance takes several forms, and the data suggests it is becoming less an advantage and more a necessity for many buyers.
The most structured arrangement is the guarantor home loan, where a family member, typically a parent, uses the equity in their own property as additional security for the buyer’s loan. Rather than contributing cash, the guarantor provides additional security to the lender, reducing the lender’s risk and allowing the buyer to borrow with a lower effective loan-to-value ratio. This approach can eliminate the need for Lenders Mortgage Insurance entirely. The guarantee can generally be released once the loan balance falls to 80% or less of the property value, at which point the guarantor’s property is no longer tied to the arrangement.
The other common form of assistance is a gifted deposit, a direct cash contribution from a family member toward the purchase. Lenders require the funds to be genuinely gifted and non-repayable, and most will still expect the buyer to contribute at least 5% in genuine savings of their own.
The scale of intergenerational wealth flowing into Australian property is significant. Over the next 20 years, at least $3.5 trillion is expected to transfer from Baby Boomers to younger generations. Some estimates place the figure closer to $5.4 trillion when factoring in property price growth and superannuation balances. Research shows that young Australians who receive a cash transfer or inheritance in excess of $5,000 from their parents are more than twice as likely to enter homeownership than those who do not receive any assistance.
However, this dynamic raises important equity concerns. Significant numbers of young Australians do not have well-resourced parents who can support their homeownership aspirations, meaning access to the property market is increasingly determined by the wealth of the previous generation, not individual effort or income.
Buying Regionally or Interstate
For Australians priced out of their home city, relocating to a more affordable market has become one of the most practical strategies available, and the population data reflects it clearly.
ABS data shows NSW lost a net 33,400 residents to other states in the year to September 2025, the largest annual outflow since records began. Net interstate migration from NSW to Queensland averaged more than 30,000 people per year from 2021 to 2025, while Western Australia recorded its highest net interstate migration in over a decade during 2025, driven by resources sector employment and relative affordability. As the Productivity Commission confirmed in April 2026, young Australians are leaving Sydney in significant numbers simply because they can no longer afford to live there.
The appeal of regional areas is also growing. Figures indicate that 26–32% more people are moving out of capital cities to regional areas than the reverse, with remote and hybrid work arrangements enabling many to maintain metropolitan salaries while substantially reducing their housing costs. Strong conditions are evident in regional markets such as Townsville, Toowoomba, Launceston, and Burnie-Somerset, while demand is spilling out from Perth into the surrounding regions.
The trade-offs, however, are real. Distance from employment hubs, reduced access to services, and the compounding effect of population inflows on regional prices all present challenges. Research from AHURI found that the influx of people into regional cities has worsened housing affordability in those areas, with limited stock and very low vacancy rates, particularly affecting low-income households already living there.
For buyers willing to weigh these factors carefully, relocating remains one of the more viable paths to ownership in 2026. But it is a strategy with diminishing returns as affordability pressures follow the migration trail.
Rentvesting
As affordability pressures shut many Australians out of the suburbs where they actually want to live, a growing number are pursuing a strategy that separates where they reside from where they invest, a concept known as rentvesting (links to Should I Rentvest blog).
The approach is straightforward: continue renting in your preferred location while purchasing an investment property in a more affordable market. Rather than waiting years to save a deposit large enough to buy in an expensive suburb, rentvestors enter the property market sooner in a location where their money works harder, building equity in the background while maintaining their lifestyle.
The numbers suggest this is rapidly becoming mainstream. Westpac’s 2025 Home Ownership Report found that 54% of first home buyers are now considering rentvesting, up from 50% the year before, rising to 61% in NSW. ABS data shows 8,283 first home buyers took out investment property loans in 2024, up 12% year-on-year, with rentvesting loan growth running at 21.4%, more than double the pace of traditional owner-occupier first home buyer loans at 9.1%.
There are, however, important trade-offs to consider. In most states, purchasing an investment property before an owner-occupied home forfeits eligibility for the First Home Owner Grant, worth up to $30,000 in some states, along with stamp duty concessions. Rentvestors also carry the ongoing responsibilities of being a landlord, and must maintain sufficient financial buffers to cover periods of vacancy or unexpected maintenance costs.
For buyers in Sydney and Melbourne especially, where saving a sufficient deposit to purchase locally can take well over a decade, rentvesting offers a pragmatic alternative. It is not without complexity, but for those who plan carefully, it represents one of the more financially considered paths into property ownership available in 2026.
The Rise of Co-Purchasing
Buying a home alone is increasingly becoming the exception rather than the rule. As deposit requirements and borrowing costs stretch beyond what a single income can comfortably support, more Australians are pooling resources with friends, siblings, and family members to enter the market together.
New CommBank data shows that 6 in 10 first home buyers are now co-buying with someone else, a significant shift from the traditionally solo path to ownership. The appeal is straightforward: combining incomes increases borrowing capacity, splits deposit requirements, and can bring a more suitable property within reach far sooner than buying individually.
The trend is being reflected in lending data too. NAB data shows joint home loans between friends or family members, where buyers are not listed as being in a relationship, are up more than 33% over the past 12 months, with the highest growth recorded in Victoria at 47%, followed by South Australia at 37% and New South Wales at 34%.
Lenders are responding to growing demand. CommBank has introduced a Property Share option, which allows customers to purchase a home with friends or family while keeping their finances separate.
As with any shared financial arrangement, the legal and structural details matter considerably. Co-purchasers must decide between joint tenancy, where ownership is equal and passes automatically to the surviving party, and tenants in common, which allows for unequal ownership shares and is generally the preferred structure between non-partners. A co-ownership agreement should outline exit strategies, contribution splits, and what happens if one party wishes to sell. Most lenders treat co-borrowers as jointly and severally liable, meaning each party is responsible for the entire debt, a risk that warrants careful consideration and independent legal advice before proceeding.
Co-purchasing is not without complexity, but for many Australians in 2026, it represents one of the most practical routes into a market that has moved well beyond the reach of a single income.
How You Buy Matters As Much As What You Buy
With property prices at record highs, affording a home in 2026 is not solely about income, savings, or which government scheme you qualify for. It is equally about how you acquire the property in the first place. In a market this competitive, the process of buying can be the difference between overpaying significantly and securing a property at its true market value.
This is where a buyer’s agent can provide a meaningful advantage.
Data-Driven Research & Access to Off-Market Properties
Buyer’s agents operate with a level of market intelligence that most individuals simply don’t have access to. By using comparable sales correctly, assessing whether a property is genuinely worth its asking price, and identifying off-market opportunities before they are publicly listed, a buyer’s agent can position their client to secure a better deal, often on properties that never hit the major portals at all.
Pre-Auction Strategy & Negotiation
Auctions are an emotionally charged environment, and emotional overbidding is one of the most common (and costly) mistakes buyers make. A buyer’s agent removes that risk by pursuing pre-auction acquisitions where possible, buying before competition escalates and prices are driven up. Where negotiation is required, they approach it with data, not emotion, sourcing properties for what they are actually worth rather than what the market heat of the moment dictates.
At Moove, our Agent Analysis Tool allows us to identify with a high degree of confidence whether a property is likely to sell above or below its advertised guide price, intelligence that gives our clients a significant edge before they ever set foot at an open home.
In a market where every dollar counts, having the right expertise in your corner is no longer a luxury. For many Australians navigating 2026’s property landscape, it is fast becoming a necessity.
Longer Loan Terms & Financial Sacrifices
For many Australians who have exhausted other options, getting into the property market has come down to two things: restructuring how they borrow, and fundamentally changing how they live.
On the lending side, the 40-year mortgage has emerged as a notable response to the affordability crisis. There are currently six lenders in Australia offering 40-year home loans, including Great Southern Bank, Pepper Money, and RACQ Bank, though none of the big four banks have yet followed suit. The appeal is straightforward: spreading repayments over a longer term reduces the monthly obligation and can help buyers pass lender serviceability assessments. A Finder survey found that 30% of Australians, equivalent to approximately 6.2 million people, would consider a 40-year mortgage if it meant lower monthly repayments.
The trade-off, however, is significant. Finder’s analysis found that extending the average loan from 30 to 40 years reduces monthly repayments by more than $300, but results in an additional $316,000 paid in total interest over the life of the loan. Equity also builds more slowly, leaving borrowers exposed for longer. The Australian Prudential Regulation Authority (APRA) has cautioned that long-term mortgages may increase borrower vulnerability due to extended exposure to interest rate rises.
Beyond loan structures, the personal sacrifices being made to enter or stay in the market are considerable. Research shows 48% of young Australians have cut back on lifestyle spending, and 34% have reduced essential spending including food, healthcare, and utilities. Raising a deposit remains the biggest hurdle for 63% of aspiring buyers, despite the vast majority making sacrifices such as cutting back on travel and leisure to save.
Homeownership in 2026 is increasingly being purchased not just with money, but with time, and in many cases, a decade or more of compounded financial compromise.
The People Being Left Behind
The strategies covered in this blog, government schemes, family support, rentvesting, co-purchasing, all require one fundamental prerequisite: a reasonable income, some savings, and a degree of financial stability. For a significant portion of Australians, none of those conditions exist. And for them, no strategy is sufficient.
The data is confronting. More than two in five low-income renters, 43%, were experiencing rental stress and at risk of homelessness in 2024–25, despite receiving Commonwealth Rent Assistance. More than a quarter of a million households, 254,571 applicants, are currently on social housing waitlists, including over 122,000 in greatest need on priority waitlists, a 12% increase on the previous year.
For those renting privately, the situation has become untenable. Anglicare’s 2026 Rental Affordability Snapshot found that virtually no housing across Australia is affordable for a single person on the maximum JobSeeker payment, which allows for a maximum rent of just $135.75 per week before financial stress begins, a figure that barely exists in the market. For a single parent working full-time on minimum wage, just 3% of the rental market is considered affordable. For a single person on minimum wage, that figure drops to 0.56%.
One in three people who needed crisis or longer-term accommodation were unable to receive help from homelessness services due to a shortage of available housing.
The housing crisis is also deepening intergenerational inequality. The homeownership rate for Australians aged 25–34 has fallen from 61% in 1981 to 43% today, and those without family wealth to draw on face a structurally different market to those who do. As one researcher noted, housing wealth is increasingly driving a wedge through Australian society, one that no deposit scheme or loan product can fully bridge.
What Needs to Change
The strategies Australians are using to enter the housing market, creative, determined, and often costly, are responses to a system that has structurally failed to keep pace with demand. The real question is not just how individuals are coping, but what governments, planners, and policymakers need to do differently.
There is broad consensus among economists and housing experts that the primary fix must be supply. In 2024–25 alone, housing completions were almost 67,000 dwellings short of the annual target implied by the National Housing Accord, meaning Australia must now deliver around 260,000 new homes per year to meet its five-year target. That shortfall compounds each year it goes unaddressed.
Planning reform is widely identified as the critical lever. Australia’s land-use planning rules are highly prescriptive and complex, with nearly half of all residential land in Melbourne zoned for three storeys or less, and 77% of all residentially zoned land in Sydney zoned for low-density housing only. The Grattan Institute’s modelling shows that allowing denser development could lift housing construction by up to 67,000 homes per year and cut rents by around 12% over the next decade, while reducing the median house price by more than $100,000.
On the tax policy front, the 2026 Federal Budget delivered a significant shift. From 1 July 2027, negative gearing for residential property will be limited to new builds, and the 50% capital gains tax discount will be replaced with inflation-adjusted indexation and a minimum 30% tax rate on realised gains. Proponents argue this helps level the playing field for owner-occupiers; critics, including the Housing Industry Association, contend it will reduce the overall supply of new homes by discouraging investment.
Social housing also demands urgent attention. Around 640,000 households are currently unable to access affordable housing in Australia, and expert bodies have called for at minimum one in every ten new homes built to be social or affordable housing, paired with appropriate support services.
Australia’s housing crisis did not emerge overnight, and no single reform will resolve it. What is clear is that incremental measures, while welcome, are not equal to the scale of the problem. The solutions required are structural, long-term, and politically difficult. For the Australians still waiting on the sidelines, the pace of change cannot come soon enough.
Even if supply improves, the way buyers behave in the market will still determine whether they overpay.
How Moove Can Help
When the market is this complex, data on its own is not enough. A buyer’s agent can help make sense of what the numbers actually mean for your budget, borrowing capacity, suburb shortlist, and timing. If you’re wondering how are people affording houses in Australia in 2026, professional guidance can help turn broad market trends into a practical buying strategy. Rather than trying to decode price trends, policy changes, lending settings, and state-based incentives on your own, you can work with someone who understands how these factors come together in real buying decisions.
Buying a home in 2026 is both a financial and decision-making challenge. A buyer’s agent:
- Helps you remove emotional bidding pressure
- Provides real-time comparable sales analysis
- Identifies off-market opportunities
- Structures negotiation strategy before competition begins
- Prevents overpayment driven by urgency or fear
For first home buyers especially, that guidance can be invaluable. A buyer’s agent can help you understand which government schemes you may be eligible for, avoid overpaying in competitive markets, assess whether rentvesting or buying in a different area makes sense, and create a clearer path from research to purchase. The goal is not just to help you buy a property, but to help you buy the right one with more confidence and less costly trial and error.
If you are trying to understand how people are still affording property in Australia in 2026, the answer is not just government support or income growth. The buyers who succeed are the ones who know how to buy correctly.
If you’re planning to buy a home in Australia and want clear, tailored guidance on your next move, speak with our buyer’s agent team today. We can help you cut through the noise, understand your options, and move forward with a strategy that fits your goals, especially if you’re buying your first home.
