Key takeaways
Australia's median first-home purchase value has increased to around $720,000.
First-home buyers accounted for 47.5% of all Aussie purchase applications during the July 2024 to June 2026 reporting period.
Rising prices haven't stopped buyers, but they're changing where and what Australians buy first.
Buying your first home has never been easy, but today's buyers are navigating a market that's changed significantly over the past few years.
According to the latest Aussie home loan application data, the median purchase value for first-home buyers has increased by around 11%, rising from approximately $650,000 in mid-2024 to $720,000 by April–June 2026.
While that figure highlights how much prices have risen for many buyers, it tells only part of the story.
Despite higher property values and ongoing cost-of-living pressures, first-home buyers continue to play a significant role in Australia's housing market.
In fact, Aussie data shows that first-home buyers now account for 47.5% of all purchase applications, making them one of the largest groups entering the market today.
Source: Aussie Internal Data, July 2026
First-home buyers remain one of the biggest groups in today's market
When discussing Australia's property market, it's easy to focus on investors, existing homeowners or interest rates. However, the latest application data suggests first-home buyers remain highly active.
Key findings include:
Metric | Result |
|---|---|
Purchase applications as a share of all applications | 50% |
First-home buyer share of purchase applications | 47.5% |
Median FHB purchase value | ~$720,000 |
Source: Aussie Internal Data, July 2026
This means almost one in every two purchase applications received by Aussie comes from someone buying their first home.
While this doesn't represent the entire Australian housing market, it does provide a valuable snapshot of how today's first-home buyers are responding to current conditions.
That's particularly notable given today's market. Higher property prices and ongoing cost-of-living pressures have made buying more challenging for many Australians, yet first-home buyers continue to account for almost half of all purchase applications in Aussie data.
The next question is: What's helping buyers continue to make their move?
Why are first-home buyers still buying?
Higher property prices haven't made buying easier, but many Australians continue to prioritise home ownership despite the challenges.
Today's buyers are navigating a market shaped by higher property prices, borrowing costs, and ongoing cost-of-living pressures.
While these challenges haven't disappeared, many Australians are continuing to adjust their plans rather than putting them on hold altogether.
The Reserve Bank of Australia (RBA) regularly notes that financing conditions and housing affordability remain important factors influencing household borrowing and housing demand, making it increasingly important for buyers to understand their borrowing capacity before entering the market.
While every buyer's circumstances are different, several factors may help explain why first-home buyers continue to enter the market:
more buyers have adjusted their expectations around where or what they purchase first
government support initiatives, such as the Australian Government's 5% Deposit Scheme, may help eligible buyers enter the market sooner
some buyers are choosing apartments or townhouses before upgrading to larger homes later
many are continuing to save while keeping a close eye on interest rates and their borrowing capacity.
Understanding your borrowing power can be a helpful first step before starting your property search, as it provides an indication of how much you may be able to borrow based on your financial circumstances.
Rather than waiting for the "perfect" market, many first-home buyers appear to be focusing on finding a property that suits their current circumstances.
You might also be interested in: Why more first-home buyers are choosing a starter home instead of waiting for their dream home
Blazenka Lovric, Aussie’s Lead Insights Analyst, said the data suggests many buyers are adjusting their expectations rather than delaying home ownership altogether.
"The biggest takeaway is that the buyers getting in today are the ones who are prepared to be flexible on location, property type and their first step into the market."
"The data shows first-home buyers are still very active, but they are succeeding by making practical trade-offs rather than waiting for ideal conditions," she added.
For some eligible buyers, government support may also help make home ownership more accessible.
The Australian Government's 5% Deposit Scheme, administered by Housing Australia, allows eligible first-home buyers to purchase a home with as little as a 5% deposit without paying lenders mortgage insurance (LMI).
Eligibility criteria, property price caps and other conditions apply, so it's worth checking the latest requirements before applying.
If you're weighing up your options, it can also help to understand how the Australian Government's 5% Deposit Scheme compares with Help to Buy and Aussie Boost, and which option may suit your circumstances.
Rising prices don't mean every first home costs the same
Although the median first-home purchase now sits around $720,000, that doesn't mean every buyer needs a budget of that size.
Property prices continue to vary considerably depending on location, property type, and buyer preferences.
For example, the latest Aussie application data shows median purchase values ranging from around $500,000 for apartments in some metropolitan suburbs through to more than $900,000 in others.
Regional markets also continue to offer different price points compared with many capital city locations.
The median simply represents the middle of all recorded purchases within the dataset, it isn't a benchmark every buyer needs to reach.
What does a $720,000 first home actually mean?
One figure on its own doesn't tell the full story.
The $720,000 median purchase value represents the middle point of first-home buyer purchases in Aussie application data. It doesn't mean every first home costs that much, nor does it mean buyers need a $720,000 budget to enter the market.
Property prices vary significantly depending on location, property type, and individual circumstances.
In some areas, buyers may still find homes below the national median, while in others, particularly higher-priced metropolitan markets, budgets may need to stretch further.
Rather than viewing $720,000 as a target, prospective buyers may find it more useful to understand their borrowing power and explore the types of properties available within their own budget.
You might also be interested in: Where are first-home buyers buying in 2026, and why?
Apartments continue to help buyers get onto the property ladder
While affordability remains a challenge, the latest application data suggests many first-home buyers are still focused on the same long-term goal: owning a house.
Overall:
60% of first-home buyers purchase houses
55% of apartment and townhouse purchases are made by first-home buyers
Rather than contradicting each other, these figures show that buying a first home isn't always a one-size-fits-all journey.
While many buyers still aspire to own a house, apartments and townhouses continue to provide an important pathway into the market, particularly for those balancing budget, location and lifestyle.
For some buyers, purchasing a smaller property first may also create an opportunity to build equity before upgrading later.
Different buyers are making different choices
Every first-home buyer's journey is different, and the latest application data reflects that.
Factors such as household income, relationship status, and lifestyle goals can all influence the type of property someone chooses to buy first.
Some broad trends include:
Buyer | Typical purchase pattern |
|---|---|
Single buyers | More likely to purchase apartments or units |
De facto couples | More likely to purchase houses |
Married buyers | Strongly house-focused |
Ages 25–35 | Largest first-home buyer group |
These trends highlight that first-home buyers often face different decisions depending on their circumstances.
Someone buying on a single income may prioritise affordability differently from a couple purchasing together, so understanding your own budget and goals can help you make choices that are right for you.
You might also be interested in: What the headlines aren’t telling first-home buyers right now
What today's market means for prospective first-home buyers
While Australia's typical first-home purchase has become more expensive, affordability still looks different for every buyer.
Your budget, deposit, borrowing capacity and property preferences all play a role in determining what's achievable.
Property prices, borrowing capacity, and available support can vary depending on your financial circumstances and the type of property you're looking to buy.
That's why understanding your budget before you start searching can help you set realistic expectations and narrow down your options.
Lisa Maxwell, Aussie Broker Ryde said: "There really is no perfect time unless you've got a crystal ball.”
“People sitting around waiting to pick the bottom of the market are probably going to miss out because no one knows it was the bottom until it's gone back up again. If you see something you like and it's in your price range, go and make an offer,” she added.
If you're planning to buy your first home, it may be worth taking a few practical steps before entering the market:
Understand your borrowing power, so you have a realistic budget to work with.
Review your deposit savings and explore whether you're eligible for government support, such as the Australian Government's 5% Deposit Scheme.
Consider different property types, as apartments and townhouses may provide another pathway into home ownership depending on your goals and budget.
Think about your longer-term plans, including whether you're buying a home to live in for years to come or taking your first step onto the property ladder.
While every buyer's circumstances are different, taking the time to understand your budget, exploring your options and planning ahead can help you approach the buying process with greater confidence.
Speaking with an Aussie Broker can also help you understand what's possible based on your individual circumstances.
