Survey shows nearly half of new homebuyers exceed budgets
Australia’s first-home buyers are facing mounting financial stress, with nearly half exceeding their property budgets and many left with little to no savings, according to Finder’s First Home Buyer Report 2025.
The research, based on a survey of 1,006 respondents, highlights the increasing strain new homeowners are under due to surging property prices and deposit requirements.
The report reveals that 47% of first-home buyers spent more than they had planned – a notable jump from 38% in 2022. Around 14% of new homeowners said they had exhausted their savings, while 33% had less than $10,000 left after purchase. Nearly one in five spent $50,000 over budget, potentially adding more than $3,500 in annual repayments based on a $500,000 mortgage.
Nearly half (45%) of those who bought their first property in the past year expressed regret, the Finder report found. The most cited reasons were overpaying (26%) and not saving a sufficient deposit (11%). Buyer’s remorse was highest among those who bought at auction, with 77% expressing regret – compared to 37% of buyers who purchased off-plan or through private sale.
The availability of affordable suburbs for average single-income buyers has dramatically dropped. Only 16% of suburbs remain affordable based on median house prices, down from 57% in 2017. For units, affordability declined from 66% to 28% over the same period. In states such as New South Wales, South Australia and Western Australia, suitable options for single buyers have shrunk by approximately 75%.
Sarah Megginson, Finder’s personal finance expert, said affordability is increasingly out of reach for those buying without support. “Buying a home is harder than ever, especially if you’re trying to do it on your own without a partner or family member,” she said.
Megginson noted the emotional and financial toll that comes with high property prices and the urgency to enter the market. “First-home buyers are not expecting to step into a mansion for their first property, but even those with realistic expectations are shocked that even entry-level homes carry eye-watering price tags.”
She added that many buyers are relying on family assistance and warned about the dangers of financial overreach. “Many buyers are stretching themselves to the limit with their finances and they have little buffer for unexpected expenses – and ironically when you’re a homeowner, the risk of an unexpected expense increases as things can and do break around the home,” she said. “Without emergency savings, you could end up in a seriously stressful financial situation.”
Looking ahead, she pointed to potential rate cuts that may ease pressures slightly, but said rising demand could worsen affordability.
“With up to three interest rate cuts predicted before Christmas, that will help current mortgage-holders ease some pressure,” she said. “But demand – especially in affordable markets – is expected to surge, which could potentially push entry-level prices even higher and squeeze first home buyers further.”
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