Where are first-home buyers buying in 2026, and why?

First-home buyers are back in force in 2025.  

Despite a few challenging years of rate rises and rising property prices, this is proving to be a year of opportunity.  

With interest rates starting to ease, new government support measures in play, and more flexible working habits redefining how (and where) we live, first-time buyers are stepping up across the country and reshaping demand as they go. 

But where exactly are they buying? And what’s influencing their decisions? 

From outer suburbs to regional growth hubs, this guide breaks down the key trends, hotspots, and insights shaping Australia’s first-home buyer activity in 2025. 

What first-home buyers look for in a suburb 

Key factors influencing buying decisions 

First-home buyers are typically value-focused. But in 2025, value goes beyond just price. Here are the top factors shaping location choices: 

• Affordability 
  Suburbs with median house prices that sit within reach of lower deposits and borrowing capacities remain in high demand. Areas with property values under $600,000-$750,000 are often the sweet spot for FHBs. 

• Proximity to work and transport 
  Being near reliable public transport or within commuting distance of major employment hubs (or even hybrid-working flexibility) plays a big part. 

• Lifestyle and liveability 
  Parks, cafés, schools, health services and community feel all matter. Many buyers are trading shorter commutes for suburbs that better fit their lifestyle. 

• Future growth potential 
  Suburbs flagged for upcoming infrastructure (like train stations, retail precincts, or freeway upgrades) are high on buyer radars. First-home buyers are looking ahead, they want their property to grow in value. 

• Government incentives 
  State and federal schemes, such as the First Home Guarantee and stamp duty concessions, are shaping where buyers choose to purchase. Some areas qualify for extra support, making them more attractive financially. 

In 2025, median house prices in regional NSW sit around $948,000, with average rental yields at 3.5%, making these areas attractive not just for affordability, but also for long-term rental returns.  

For units, regional NSW offers a more accessible entry point at $650,000, with stronger rental yields of 4.2%, according to Aussie’s market data. 

Source: CoreLogic, SQM Research – April 2025   

How interest rate movements are changing the map 

With borrowing power closely tied to interest rates the Reserve Bank’s recent easing cycle, and anticipation of more cuts is opening new doors.  

More affordable monthly repayments are helping first-home buyers stretch slightly further, but many are still prioritising budget-conscious decisions. 

As a result, we’re seeing more first-home buyers in: 

• Outer metro suburbs: Where land sizes are bigger, homes are detached, and price per square metre is more affordable. 

• Regional centres: Think Bendigo, Toowoomba, Ballarat, Orange, and Launceston. Thanks to remote work and hybrid setups, lifestyle has become just as important as location. 

Want to know how much you could borrow for homes in these areas? Try our Borrowing Power Calculator. 

Top suburbs where first-home buyers are purchasing 

What the data shows 

At Aussie, we’ve analysed loan applications across our national broker network to identify FHB hotspots in 2025.

Here’s what we’ve found: 

• A clear rise in outer-metropolitan corridors, particularly those near new infrastructure. 

• Strong activity in regional cities with solid rental demand and infrastructure pipelines. 

• Increased interest in masterplanned estates with incentives and affordable packages. 

Let’s break it down state-by-state. 

State-by-state breakdown of popular first-home buyer suburbs 

Source: Data source internally December 2025, April 2025 

Why these suburbs are in demand 

The affordability shift: beyond the city fringe 

As prices in inner-city locations remain high, FHBs are looking further afield. But they’re not just compromising, they’re choosing areas that offer: 

• Larger blocks 

• Newer homes with fewer renovation needs 

• Strong rental appeal, in case they rentvest 

What was once considered ‘too far’ is now a smart financial move, especially with the right infrastructure planned. 

According to recent Aussie data, suburbs in WA like Balga and Whitby have seen annual price growth of 41.9% and 47.9% respectively, clear signs that outer-metro growth corridors are booming, and first-home buyers are taking note. 

Source: CoreLogic, SQM Research – April 2025   

You might also be interested in: Rentvesting in Australia 

Regional growth driven by lifestyle and flexibility 

COVID-era flexibility didn’t vanish. Many employers have embraced hybrid or remote models, giving buyers more options. As a result, we’ve seen: 

• More FHBs relocating to regional cities where homes are more affordable, and lifestyle is richer 

• Migration to coastal or hinterland areas that still allow occasional commuting to major cities 

• Demand driven by regional job growth in health, education and government sectors 

Government incentives (like regional buyer grants) are also nudging FHBs toward these locations. Suburbs like Toolooa and Deeragun in Queensland are seeing 36%+ annual growth, showing strong momentum in regional migration. 

Source: CoreLogic, SQM Research – April 2025   

You might also be interested in: First home buyer guide on government grants and concessions 

Infrastructure and community planning is unlocking new supply 

From new train stations to expanded road networks, infrastructure spending is reshaping buyer maps. Suburbs connected to new services are surging in popularity. 

Developers are also creating masterplanned communities tailored to FHBs offering: 

• Turnkey homes or house-and-land packages 

• Shared community amenities like parks and playgrounds 

• Clear zoning and investment in schools and healthcare 

How first-home buyers are financing their purchases 

Home loan trends for FHBs in 2025 

• Low-deposit loans: Many first-home buyers are using 5-10% deposit options, some under government schemes to avoid LMI (lenders mortgage insurance). 

• Fixed-rate popularity: With rates trending down, some FHBs are locking in fixed rates to guarantee certainty for the first few years. 

• Split loans: Mixing fixed and variable components is a popular strategy, offering flexibility and stability. 

• First Home Guarantee: This continues to be one of the most-used schemes by FHBs, allowing as little as 5% deposit with no LMI. 

How Aussie Brokers are helping first-home buyers get in sooner 

Navigating home loan products and incentives can be complex, but that’s where a broker makes all the difference. 

An Aussie Broker can: 

• Compare 4,000+ loan products from over 25^ lenders 

• Check eligibility for state and federal government schemes 

• Help structure the loan to match your plans and current budget 

• Provide clarity around costs like stamp duty, LMI, and ongoing repayments 

What next? Your first steps toward buying 

Buying your first home doesn’t have to be overwhelming. With the right guidance, tools, and knowledge, you can start strong. Here's what to do next: 

1. Explore suburbs 
   Use Aussie’s Suburb Insights Tool to compare property prices, lifestyle features and growth potential. 

2. Check your borrowing power 
   Know what you can afford before you search. Use the Borrowing Power Calculator to estimate what you can borrow based on your income, deposit, and debts. 

3. Get loan pre-approval 
   It shows sellers you’re serious and helps you move fast when the right home comes up. An Aussie Broker can organise this for you. 

4. Start your property search 
   Think beyond location. Focus on liveability, infrastructure plans, rental appeal, and how the home could suit you for years to come. 

You don’t have to do it alone 

First-home buyers in 2025 are proving that it’s possible to enter the market with the right strategy, support, and suburb know-how.  

Whether you’re buying in a regional lifestyle town or an outer-metro estate, there are options, and there’s help available to guide you through every step. 

Ready to buy your first home? 
Talk to an Aussie Broker for expert, personalised support and make 2025 your year to buy. 

Watch back-to-back episodes of House Hunters every Friday night at 7.30pm