Domain’s First Home Buyers Report 2026, released this week, reveals the cost of entry-level properties in Perth have doubled in price over the past five years, with affordability pressures reshaping the priorities, timelines and expectations for potential buyers.

Perth was noted as the city with one of the largest price increase to purchase an entry-level unit. The average property entry price increased by more than 22 per cent in the December quarter last year. Over the past five years, the entry-level prices have increased from $379,000 to just under $800,000.

The report also points to supply shortages as a key driver of ongoing price pressure, particularly in markets such as Western Australia.

Deputy president of the Real Estate Institute of WA Rob Mandacini says stock needs to increase to help first home buyers.

“The demand right now is just so strong because we’ve got such limited stock in Western Australia and unless we can get meaningful supply, it’s going to remain challenging,” he says.

Mr Mandacini says first home buyers in WA now have to be more strategic and patient in this competitive environment.

“I think it just means that the journey itself is going to take a bit longer,” he says.

On average, a young couple aged 25 to 34 now need five years and four months to save a 20 per cent deposit for an entry-level house. That couple would then spend 42 per cent of their income on mortgage repayments for that home.

In Sydney, that timeline stretches to seven years and seven months – the longest saving period in the country. Even units, seen as a more accessible stepping stone, are becoming harder to reach, with buyers now needing about three and a half years to save a deposit in many capital cities.

The report listed that entry level houses and unit prices are significantly rising quicker than wages.

President of Curtin’s student Guild Dylan Storer says students are struggling to meet everyday expenses while trying to cover rent.

“From the students I speak to, owning a home is so far down their list of priorities because it’s simply unattainable,” he says

Mr Storer added that the cost of entry-level housing is exacting a heavier toll than in previous times.

“The extent of the sacrifices that are being asked by young people today in order to own a home are so much greater as an impact to their standard of living than has happened at previous times,” he says.