How long does it take to save a house deposit in Australi...

Key findings at a glance

21^yrs

To save a 20% deposit on the national median at the 2025 saving rate

$164^k

$164,925 required for a 20% deposit on the national median of $824,627

39^yrs

To save in Sydney, the hardest market in the dataset

13^yrs

To save in regional NT, the most accessible entry point nationally

Section 01Deposit timeline

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

Australia's median dwelling price reached $824,627 in 2025, up from $502,080 in 2017. A 20% deposit on the national median home is now $164,925.

At the current household saving ratio of 6.9%, the average earner would save about $7,715 a year. With no starting savings and no investment return included, it would take approximately 21 years to reach a 20% deposit.

Income has increased over the same period, but not as quickly as the deposit required. Average annual income rose from $85,441 in 2017 to $111,815 in 2025, an increase of around 31%. The deposit needed for a median-priced home rose by 64%, from $100,416 to $164,925.

That gap shows why the time needed to save a deposit has increased, even as wages have continued to rise.

National median price

$824^k

↑ 64% since 2017

20% deposit required

$164^k

As of 2025

Years to save deposit

21^yrs

At 6.9% saving rate

Years to save a 20% house deposit, Australia 2017–2025

National median dwelling · average annual income · household saving ratio · each calendar year

Standard conditions

COVID-era anomaly (2020–21)

Post-COVID trough (2022–23)

National median dwelling · average annual income · household saving ratio · each calendar year. Bar colour reflects economic context: navy = pandemic-era anomaly (2020–21); red = post-COVID trough (2022–23).

Source: ABS Total Value of Dwellings; ABS Average Weekly Earnings; ABS National Accounts (household saving ratio), 2017–2025.

42^yrs

2023 was the hardest year on record to save a deposit

When the household saving ratio fell to 3.3% in 2023, an earner on the average income could set aside just $3,356 per year. That put the deposit threshold of $140,984 a full 42 years away, the longest timeline in the dataset, more than double the 18-year figure recorded in 2019.

That 42-year figure shows how quickly the deposit timeline can change when the saving rate falls.

The deposit itself did not rise sharply in 2023. It increased from $134,491 in 2022 to $140,984 in 2023. The bigger change was the saving rate, which reduced estimated annual savings from $3,901 to $3,356.

By 2025, the household saving ratio had recovered to 6.9%, bringing the deposit timeline back to 21 years. That matched the 2018 timeline, even though the deposit required was 64% higher in dollar terms.

Section 02Saving rate

How saving rates affect deposit timelines

The household saving ratio has a major effect on how long it takes to save a deposit. Between 2017 and 2025, it ranged from 3.3% to 13.9%, a fourfold difference. That shift moved the estimated deposit-saving timeline from 8 years to 42 years, even before changes in property prices are considered.

Household saving ratio, Australia 2017–2025

Net household saving as a percentage of net household disposable income · each calendar year

Household saving ratio (%)

The 2020–21 spike was driven by reduced consumer spending during lockdowns and government income support. The 2022–23 trough followed the lifting of restrictions, return of spending, and rapidly rising cost-of-living pressures.

Source: ABS Australian National Accounts: National Income, Expenditure and Product (Dec 2025).

Did higher saving rates during COVID make it easier to save?

Not for long. In 2020 and 2021, the household saving rate rose to 13.9% and 12.8%, cutting the theoretical deposit timeline to 8 years and 11 years. But property prices rose by about 23% between 2020 and 2022, pushing deposit thresholds higher. By 2022, the saving rate had fallen to 4%, while the national 20% deposit had reached $134,491, about $25,000 more than in 2020.

By 2025, the saving ratio had recovered to 6.9%, but it was still well below the levels seen during the COVID saving period. As a result, the national deposit-saving timeline remained much longer than it was in 2020 and 2021.

Unless saving capacity improves further or property prices soften, 21 years remains the working estimate for an average earner saving a 20% deposit nationally.

Section 03By state

Where you buy determines how long it takes to save

The national estimate of 21 years hides large differences between housing markets. Across Australia, the deposit-saving timeline ranges from 13 years in regional NT to 39 years in Sydney. That is a 26-year gap driven mostly by property prices. The calculation uses the same national saving rate across all regions.

Among the capital cities, Sydney has the longest timeline at 39 years. Brisbane now sits at 29 years, ahead of Melbourne at 23 years, while Adelaide is 26 years, Canberra is 25 years and Perth is 23 years. Regional markets shorten the timeline in every state: Melbourne to regional Victoria saves 7 years; Adelaide to regional SA saves 10 years; Perth to regional WA saves 8 years.

Years to save a 20% deposit by state and territory, 2025

Capital city timelines shown · select a state to see capital and regional detail

Under 20 yrs

20–24 yrs

25–29 yrs

30+ yrs

Select a state to see capital city and regional deposit saving timelines

Colours reflect capital city deposit saving timelines. The national household saving ratio of 6.9% is applied uniformly; income figures use state-level ABS AWE averages.

Source: ABS Total Value of Dwellings (2025); ABS Average Weekly Earnings (2025).

26^yrs

How big is the Sydney affordability gap?

Sydney's 39-year timeline and regional NT's 13-year timeline sit 26 years apart. The difference comes from price: a $303,000 deposit in Sydney against a $92,000 deposit in regional NT. Both use the same saving rate. For a buyer with genuine location flexibility, this is the largest affordability lever available.

The deposit is only the entry point

Saving a 20% deposit nationally takes an estimated 21 years at the current saving rate. Saving the full purchase price of the national median home would take 107 years at the same rate. The deposit is not the finish line. It is the entry point to buying an $824,627 home, with most of the purchase price financed through a home loan.

Section 04All regions

House deposit savings time by state and region

Deposit-saving timelines vary widely across Australia, especially between capital cities and regional markets.

Every regional market sits at or below the 21-year national average, except for regional NSW and Queensland, which match it exactly. Darwin, at 19 years, is the only capital city below the national average.

Sort by:

Region	Median price	20% deposit	Annual saving	Years to save
Rest of NT NT · Regional	$460,000	$92,000	$7,355	13 yrs
Rest of WA WA · Regional	$622,000	$124,400	$8,252	15 yrs
Rest of Vic VIC · Regional	$610,000	$122,000	$7,462	16 yrs
Rest of SA SA · Regional	$575,000	$115,000	$7,207	16 yrs
Rest of Tas TAS · Regional	$609,000	$121,800	$6,774	18 yrs
Darwin NT · Capital city	$711,000	$142,200	$7,355	19 yrs
Rest of NSW NSW · Regional	$800,000	$160,000	$7,715	21 yrs
Rest of Qld QLD · Regional	$799,000	$159,880	$7,500	21 yrs
National average Australia · National	$824,627	$164,925	$7,715	21 yrs
Hobart TAS · Capital city	$750,000	$149,900	$6,774	22 yrs
Melbourne VIC · Capital city	$875,000	$175,000	$7,462	23 yrs
Perth WA · Capital city	$951,000	$190,200	$8,252	23 yrs
Canberra ACT · Capital city	$1,043,000	$208,500	$8,192	25 yrs
Adelaide SA · Capital city	$950,000	$190,000	$7,207	26 yrs
Brisbane QLD · Capital city	$1,100,000	$220,000	$7,500	29 yrs
Sydney NSW · Capital city	$1,515,000	$303,000	$7,715	39 yrs

Annual saving = average state income × 6.9% national saving ratio. Years to save = 20% deposit ÷ annual saving, rounded to the nearest year. No starting savings or investment return assumed. All figures nominal.

Section 05Policy

Policy pathways for first-home buyers

Government schemes can reduce the upfront deposit needed to buy a home or make it more tax-effective to save one. For eligible first-home buyers, this can shorten the time needed to reach a deposit.

First Home Guarantee

5^%

Eligible buyers can purchase with a 5% deposit, with the government guaranteeing the remaining 15% and eliminating LMI. On the national median, the deposit falls from $164,925 to approximately $41,231 — a saving timeline of around 5 years at the current rate.

First Home Super Saver Scheme

$50^k

Up to $50,000 in voluntary super contributions can be withdrawn toward a deposit, taxed at the 15% concessional rate rather than the marginal rate. For higher-income earners, the tax concession is material, reducing the real after-tax cost of saving.

The two main federal pathways are the First Home Guarantee, which allows eligible buyers to purchase with a 5% deposit, and the First Home Super Saver Scheme, which lets buyers use eligible voluntary super contributions toward a deposit. Both schemes have eligibility rules, income limits and contribution or place limits, so they may not apply to every buyer.

Does a smaller deposit make buying cheaper?

A smaller deposit reduces the upfront amount needed, but it increases the size of the loan. With a 5% deposit on an $824,627 property, the buyer would borrow about $783,396. That means more debt and more interest paid over the life of the loan than if the buyer had saved a larger deposit. The right option depends on the buyer's income, borrowing capacity, rent costs, local property prices and eligibility for first-home buyer schemes.

Section 06Strategies

Ways to reduce the time needed to save a deposit

The deposit saving timeline depends on three factors: how much a buyer saves each year, the size of the deposit they need, and where they choose to buy. Each factor can change the final estimate.

Note: The national average figures used throughout this article represent a baseline, individual circumstances will differ considerably in each direction.

Increasing the saving rate shortens the timeline

At the national average of 6.9%, reaching the national median deposit takes 21 years. At 10%, approximately 15 years. At 15%, around 10 years. The effect is large because each increase adds more annual savings against the same deposit target. Even an extra $400 a month could take several years off the estimated timeline.

A regional market can reduce the saving period by 7 to 10 years

Regional areas require smaller deposits and shorter timelines: 16 years instead of 23 in Victoria; 16 instead of 26 in South Australia; 15 instead of 23 in Western Australia. Employment opportunities, commuting and access to services still matter, but the deposit required is lower in every regional market compared with the capital city equivalent.

Consider the full cost of a smaller deposit

Lenders mortgage insurance (LMI) usually applies when a buyer borrows more than 80% of a property's value without a government guarantee. On an $824,627 purchase with a 10% deposit, LMI could add around $15,000 to $25,000 to the loan. Buyers need to weigh this extra cost against the additional years spent renting while saving for a larger deposit.

FHSS can be more valuable for higher-income earners

The First Home Super Saver Scheme allows eligible buyers to use voluntary super contributions toward a home deposit. These contributions are generally taxed at 15%, rather than the buyer's marginal tax rate. For a buyer on a 37% marginal tax rate, using the maximum $50,000 FHSS withdrawal could save about $11,000 in tax. The scheme has strict eligibility and contribution rules, so buyers should check the requirements carefully and consider independent financial advice.

"At a 6.9% saving rate on an income of $111,815, the average earner saves $7,715 a year toward a deposit. Lifting that rate to 10% reduces the national timeline from 21 years to approximately 15. At 15%, it falls below 10."

The household saving ratio is a national aggregate. Individual saving capacity varies by income, household size, location and cost-of-living pressures. See the methodology note in references for a full explanation of the assumptions used throughout this article.

General information only

This article is based on publicly available ABS data. It is general information only and does not constitute financial advice. If you are making decisions about saving for a property purchase, consider speaking with a licensed financial adviser.

References

ABS Total Value of Dwellings (2025): median dwelling prices by state, territory and capital city, 2015–2025
ABS Average Weekly Earnings: average full-time adult earnings by state and territory, annualised for income estimates
ABS Australian National Accounts: National Income, Expenditure and Product: household saving ratio, 2017–2025

Methodology note

Deposit target = median dwelling price × 20%
Annual saving = average full-time state income × national household saving ratio (6.9% in 2025)
Years to save = deposit ÷ annual saving, rounded to the nearest year
No starting savings assumed and no investment return on accumulated funds modelled
National saving ratio applied uniformly across all states and territories
All figures are nominal and not adjusted for inflation or future price growth