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These young Aussies need 20 years to save for a home

Aussies will need hundreds of thousands of dollars for a deposit on their first home.

A composite image of a sign out the front of a home that indicated it is for sale and rows of apartment blocks and houses on the Australian coast line.
First homebuyers may find themselves saving for decades before they're able to buy. (Source: Getty)

Younger Aussies hoping to own a home could be waiting a while, according to new research.

First homebuyers would need at least 12 years to save a deposit for the average unit and 16 years for the average house if they started saving today, Finder analysis found.

This would mean saving $299,868 for a house deposit, and $188,523 for a unit.

Finder home loan expert Richard Whitten said many first-home buyers couldn’t afford to save such a significant amount.

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“Wage growth over the past few decades simply hasn’t kept up with skyrocketing property prices,” Whitten said.

“Saving up enough for a deposit, especially when the cost of everything, from food, energy, and insurance – not to mention rent – is rising, is a big barrier to overcome. Buying a home is becoming increasingly out of reach for many Aussies.”

State breakdown

The research found the situation was the worst in NSW where households needed, on average, 20 years of savings for a house deposit, amounting to $470,660.

Tasmania comes in close second, with households needing 17 years worth of savings for a house. That would mean having $226,098 saved up.

Those in Victoria would need, on average, 16 years to save the $326,625 required for a house deposit.

South Australians can achieve their dream one year quicker, needing 15 years, on average, to save $211,456.

Aussies in Queensland and the ACT are not far behind needing 14 and 12 years to save the $232,960 and $312,386, respectively.

The Northern Territory and Western Australia come in as the best places to save for homeownership. But households in the NT would still need eight years of savings - equivalent to $151,584 - for a house deposit, while those in WA would need 10 years, on average, to save the $178,697 required for a deposit.

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