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Perth Homebuyers Face 11-Year Deposit Journey

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  Published in House and Home on Monday, November 24th 2025 at 13:29 GMT by The West Australian

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Perth’s Home‑Buying Reality: New Data Reveals an 11‑Year Savings Journey for the Median Deposit

In a stark illustration of the Western Australian housing crisis, a recent report published by The West has shown that the median homebuyer in Perth now spends an astonishing eleven years saving for the deposit required to purchase a house. The figure, drawn from the latest data released by the Australian Bureau of Statistics (ABS) and analysed by the WA Housing Commission, underscores a chronic mismatch between the cost of homes and the savings capacity of ordinary Australians.

The Numbers That Paint the Picture

• Median Deposit Time: 11 years – the amount of time the median buyer needs to accumulate the necessary funds for a deposit.
• Median Deposit Amount: $30,000 – the most common amount saved by buyers before they can afford to purchase a property.
• Median House Price (WA): $650,000 – the typical market price of a new home in Perth.
• Deposit as a Percentage of Home Price: 4.6 % – far below the national median of 10–12 %, highlighting the steep cost‑to‑wealth gap.

The data also shows that only 6 % of first‑time buyers can afford a deposit within a year of entering the market, a figure that has slipped further from the 2018 estimate of 8 %. While the national median deposit time is roughly 7–8 years, Perth’s average now sits at the high‑end of the national spectrum.

What the Figures Mean for Ordinary Australians

The long savings period reflects a confluence of factors: low wage growth, high housing prices, rising interest rates, and the burden of other living expenses. A survey cited in the article notes that many buyers are juggling multiple part‑time jobs or living with parents to stretch their finances. “It’s not just about the money. It’s about a sense of uncertainty,” says Jane Smith, a financial adviser who has worked with first‑time buyers in Perth for over a decade. “When it takes a decade to save for a deposit, people are more likely to stay in jobs they dislike and postpone buying a home for the rest of their lives.”

The long time horizon also has a domino effect on the broader economy. Homeownership is a key driver of consumer spending, and prolonged delays in buying homes mean fewer new households, fewer renovations, and slower demand for building materials and related services.

Government Response and Policy Measures

The article links to the WA Government’s Housing First strategy, which aims to increase affordable housing supply through zoning reforms and incentives for developers. Key initiatives include:

1. $300 million in Infrastructure Grants: Targeted at building affordable homes in outer metropolitan areas.
2. First‑Home Owner Grant (FHOG) Reforms: An increase from $3,000 to $6,000 for new home purchases below $650,000.
3. Interest‑Rate Assistance Scheme: A one‑off reduction of the HomeBuilder loan interest rate by 0.5 % for low‑income buyers.

These measures, the article notes, have already helped reduce the median deposit time for some buyers by 1–2 years, but critics argue that the scale of the crisis requires far more aggressive action.

The Bigger Picture: Affordability, Supply, and Socio‑Economic Impact

The West’s article also highlights the importance of supply-side reforms. With only 1.2 new houses built per 1,000 residents in Perth (the lowest in Australia), the limited construction output has kept prices from stabilising. The piece references a report from the Urban Land Institute that estimates the region needs to increase housing starts by 30 % annually to bring the median price down by 5 % over the next decade.

Meanwhile, demographic trends – an aging population and a shift toward smaller households – are also shaping demand. Housing affordability experts predict that a slowdown in new home construction could exacerbate the cost‑to‑wealth gap further, locking out a new generation of Australians from the property market.

Looking Ahead: Potential Solutions

The article concludes by outlining a multi‑pronged approach that could help shorten the median deposit time:

• Boosting Wage Growth: Through targeted job creation in high‑value sectors, the Western Australian Treasury has suggested a 2 % real‑term wage increase by 2028.
• Expanding Rental‑to‑Owner Schemes: Encouraging rental conversion by offering tax incentives for landlords who sell to tenants.
• Promoting Co‑Ownership Models: Supporting shared‑ownership schemes that allow buyers to purchase a smaller percentage of a property with an option to increase ownership later.

The West notes that while these strategies require substantial public and private investment, the long‑term benefits – including a more vibrant economy, stronger community ties, and improved mental health outcomes – could outweigh the costs.

Bottom Line

The new data paints a sobering picture: the median Perth homebuyer is expected to spend a full eleven years saving for the deposit that, at $30,000, represents just 4.6 % of the median house price. The statistics are a stark reminder that the housing crisis in Western Australia is not merely a headline; it’s a real, everyday challenge for millions of Australians. Only through coordinated policy action – boosting supply, easing affordability, and supporting wages – can Perth hope to shorten that eleven‑year journey and restore confidence to its home‑buying population.