How to save for a property on a NSW/ACT median income

Every year, more and more young Aussies feel like home ownership is out of reach for them. And with good reason. Property prices, rent and the cost of living have soared as wages stay stagnant. But there’s still a way to get it done.

The truth is, saving for a home in these areas is tough, but not impossible.

With the right plan, practical steps, and some clever thinking, you can make it happen.

Let’s break it down.

First things first

The median income and the average income are both similar concepts, but in practice, they’re very different indeed.

While the average income is higher in NSW at around $90,000 to $95,000 (Source: ABS), it’s important to use the median income when calculating how the ordinary Aussie can buy a home.

The average income is higher because of radical outliers at the top of the spectrum who earn far more and can skew the data. The median income, however, recognises the more average experience.

With that in mind - and for the purposes of this article - we’ll use the median income of $72,000 for NSW and $82,000 for the ACT (Source: ABS).

What jobs do median income earners hold?

With that in mind, what does a $72,000 salary look like in practice? This band actually represents what keeps Australia going.

These are the people who keep the wheels of society turning—working in roles that are vital but rarely glamorous.

Primary school teachers, nurses, and tradies dominate the median income bracket. They’re the backbone of the community, yet many still struggle to break into the property market.

Here’s a snapshot of typical jobs and their annual salaries (Source: ABS):

These roles aren’t topping the salary charts, but they’re steady, reliable, and form the financial foundation for thousands of would-be homeowners.

What does the average property look like?

By the numbers from the ABS, the median property price in NSW is $1.06 million, and in the ACT, it’s $890,000 (Source: ABS). These numbers represent a mix of housing stock—freestanding homes in suburban areas, townhouses closer to city centres, and everything in between.

In Sydney, a median-priced home is often a three-bedroom property in an outer suburb with decent transport links. Think places like Blacktown or Campbelltown.

In the ACT, it’s more likely a modern townhouse in Gungahlin or Tuggeranong, balancing affordability with accessibility.

For units, the median price in Sydney is roughly $775,000, while in Canberra it’s around $670,000 (Source: ABS).

Apartments offer a more affordable entry point, but they come with trade-offs like strata fees and less space—something to weigh up when you’re planning for the future.

How long does it take to save for a 20% deposit?

Saving for a 20% deposit is the gold standard of home ownership, but let’s not sugarcoat it—it’s tough.

For a median-priced house in NSW, you’re looking at a deposit of around $212,000. In the ACT, it’s around $178,000.

Units are more achievable, with deposits closer to $155,000 in Sydney and $134,000 in Canberra.

Now, let’s do the maths.

On the median income in NSW, saving 20% of your post-tax salary—around $12,000 annually—would take:

• 17.6 years to save for a house in NSW.

• 14.8 years for a house in the ACT.

• 12.9 years for a unit in Sydney.

• 11.2 years for a unit in Canberra.

These figures assume perfect discipline and zero financial shocks—a big ask for most people. Dual-income households can halve these timelines, but single buyers often face a much harder road.

Reality check: do you really need a 20% deposit to buy a home?

Here’s the good news: the 20% deposit isn’t a hard and fast rule. If you speak with one of our brokers, you’d actually be surprised at the number of low-deposit options on offer in the market.

Plenty of lenders offer low-deposit options, with some requiring as little as 5% or even 2% under government-backed schemes like the First Home Guarantee.

You may need to pay Lender’s Mortgage Insurance (LMI) with low-deposit loans, but this cost can be outweighed by the benefits of entering the market sooner.

Property prices are unlikely to freeze while you save. An Aussie mortgage broker can help you find a low-deposit loan that fits your circumstances, giving you a realistic path to home ownership without waiting decades.

Back to the numbers.

Women have it harder when saving for property

For women in NSW, the property ladder is even steeper according to data from the Australian Bureau of Statistics.

Men in full-time roles earn, on average, 14% more than their female counterparts.

That’s tens of thousands of dollars over a lifetime—money that could have gone toward a deposit.

In NSW, men earning the median income can save for a 20% deposit on a median-priced home in approximately 13 years, while women, earning 14% less on average, would need almost 15 years to achieve the same goal.

That’s an extra 1.8 years of saving for women, underscoring the financial barriers they face.

Our brokers are aware of this, and can definitely look to redress the balance for women when looking for your first home.

Could you buy a home sooner in regional areas?

Unsurprisingly, you can get into a home faster if proximity to the city is deprioritised.

The median house price in regional NSW is $580,000, offering a huge saving compared to Sydney’s $1.06 million.

That’s nearly half a million dollars saved, and the properties themselves are often more generous with larger blocks, detached homes, and quiet neighbourhoods.

Regional hubs like Newcastle, Orange, and Wagga Wagga are becoming increasingly popular for first-home buyers.

They offer job opportunities, lifestyle perks, and the chance to own a home without sacrificing your entire financial future. For anyone struggling with Sydney’s sky-high prices, going regional is a serious option to consider.

Where should first-home buyers look in 2025?

If you’re planning to buy in 2025, focus on areas offering growth potential and affordability.

Here are a few to consider:

• Western Sydney: Suburbs like Penrith and Campbelltown continue to grow, with new developments and transport links making them more accessible than ever.

• Canberra’s Outer Suburbs: Areas like Gungahlin and Tuggeranong offer a balance of affordability and proximity to city amenities, perfect for first-home buyers.

• Central Coast: Gosford and Wyong are becoming hotspots for buyers seeking a lifestyle upgrade with reasonable commutes to Sydney.

• Regional Hubs: Cities like Orange, Newcastle, and Dubbo combine affordability with infrastructure, making them prime targets for young families.

How to save for a deposit: a sample budget

Remember: you don’t always need a 20% deposit. A quick conversation with one of our brokers can show you how.

But if you did want to save on the median income, we’ve knocked up a quick budget.

You can also work with one of our brokers to help figure out how you can get your finances in order to achieve your home ownership dream in Australia’s biggest - and most expensive - capital city.