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A staggering 20 years is needed to save for the average house in New South Wales, and 16 years for the average unit, the Finder analysis has revealed.
The figures also assume a 3.5 per cent annual growth on property prices, 3 per cent average savings interest rate, 3.5 per cent annual growth in the median household income.
The calculations indicate first home buyers have to save an average of $299,868 for a house deposit and $188,523 for a unit.
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Finder’s home loans expert Richard Whitten has said the calculations are proof that “buying a home is becoming increasingly out of reach for many Aussies”.
“Wage growth over the past few decades simply hasn’t kept up with skyrocketing property prices,” he said.
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“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.”
The Finder analysis shows it is hardest to buy a home in NSW, where the average household needs on average two decades of savings for a house deposit, amounting to $470,660.
Tasmania is the second hardest place to save for, with households needing 17 years worth of savings – $226,098 – for a house.
In Victoria, on average 16 years are required to save the $326,625 for a house deposit.
The Northern Territory is the place where Aussies can buy a house the fastest, with six years of saving needed for a unit and eight for a house.
