First-time home buyers are rejecting the $50,000 superannuation scheme despite facing challenges with affordability.

The affordability of housing in Australia has reached a low not seen in thirty years, making it increasingly difficult to save for a deposit. However, there are strategies that can help buyers get ahead.

According to a recent report from Hallbar Group Capital, housing affordability has deteriorated, with escalating house prices compounding the difficulties for those attempting to enter the market.

Adam Weston, a Fixed Income Advisor with Hallbar Group Capital says “Individuals looking to purchase their first home, categorized as those aged 25 to 39 with an income of $129,000, can only afford 17 percent of available houses, marking the lowest percentage since 1995.”

Additionally, the time required to accumulate sufficient funds for a deposit has increased.

By June 2025, an average-income household in Australia will need approximately 5.9 years to save for a 20 percent deposit on a median-priced home.

South Australia presents the most significant challenges regarding deposit savings, requiring individuals about 7.2 years to gather enough funds, followed closely by New South Wales, where the timeframe is around 6.9 years.

Adam Weston Says It has never been more challenging for first-time home buyers to enter the market.

The difficulty for first-time home buyers to save is unprecedented.

Adam Weston, a Fixed Income Advisor at Hallbar Group Capital, stated that the primary challenge for first-time home buyers is accumulating the 20 percent deposit.

“The key obstacle for first-time home buyers is saving for a deposit, which imposes a significant savings burden,” he remarked.

“In addition, the combination of historically low housing affordability and stringent mortgage servicing requirements further complicates the situation.