The Challenge for Single Home Buyers in Australia

A Market Increasingly Out of Reach

The prospect of purchasing a property in Australia as a single individual has become an almost impossible task. New research highlights a stark financial reality: single buyers are being systematically priced out of the market. While the financial advantages of being in a relationship have long been understood, a recent report reveals the significant blow this deals to single people, showing it is now exceptionally difficult to purchase a home by yourself anywhere in Australia.

According to the First Home Buyer Report 2025 from comparison site Finder, an average Australian with a single income can now only afford the mortgage for a median-priced house in a shocking 16 per cent of the nation's suburbs. This marks a dramatic decline from 2017, when a single buyer could afford a home in over half of the country's suburbs. The unit market offers little more respite; affordability for single buyers has fallen to less than a third of Australian suburbs, at just 28 per cent. This is a steep drop from 2017, when singles could afford to purchase a unit in two-thirds (66 per cent) of suburbs.

This growing affordability pressure has led to a noticeable decline in the number of single buyers successfully entering the market. In 2021, 45 per cent of all first home buyers were individuals; by 2025, that figure has fallen to just 39 per cent.

A National Affordability Crisis in Numbers

The decline in affordability for single-income households has been severe across the country. In New South Wales, South Australia, and Western Australia, the number of suburbs where an average single person can afford mortgage repayments has plummeted by approximately three-quarters since 2017.

The situation is most severe in NSW, where single Aussies could afford an average house in 40 per cent of suburbs in 2017; that figure has now collapsed to only 11 per cent. South Australia has witnessed a similarly dramatic fall, dropping from 85 per cent of suburbs being affordable for singles in 2017 down to only 19 per cent in 2025.

To put this in perspective, the Australian Bureau of Statistics reports that the average full-time weekly earnings were $1,953.70 as of November 2023, which equates to an annual income of approximately $101,592. At the same time, as stated by CoreLogic in their May 2024 Home Value Index, the national median dwelling value is now $784,548, illustrating the immense financial gap facing a single earner.

Expert Analysis: A Market of "Eye-Watering Price Tags"

Sarah Megginson, a personal finance expert at Finder, commented that buying a home is harder now than it has ever been, "especially if you're trying to do it on your own without a partner or family member".

She noted that while "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".

This leads to a significant deposit hurdle. "Saving a deposit is now a multi-year grind and many first-time buyers rely heavily on the 'bank of mum and dad' to bridge the gap between what they have and what they need," Ms Megginson added.

Furthermore, she warns that predicted interest rate cuts later in the year may not help aspiring buyers. While rate cuts would ease pressure on current mortgage holders, they could make affordability worse for those trying to enter the market. "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," Ms Megginson said.

Government Support for First Home Buyers

While the market presents significant challenges, the Federal Government offers several programs designed to assist buyers, which can be particularly beneficial for single purchasers.

As explained by Housing Australia, the federal agency responsible for the programs, the Home Guarantee Scheme (HGS) is a key initiative. It allows eligible first-home buyers to purchase a home with a deposit as low as 5 per cent without needing to pay for Lenders Mortgage Insurance (LMI). A specific component of this is the Family Home Guarantee, which is tailored for single parents with at least one dependent child, allowing them to purchase a home with a deposit of as little as 2 per cent.

Additionally, the Australian Taxation Office administers the First Home Super Saver (FHSS) scheme. As detailed by the ATO, this scheme allows individuals to make voluntary contributions to their superannuation fund to save for a first home. These contributions, up to a limit of $15,000 per year and a total of $50,000, can then be withdrawn along with associated earnings to form a home deposit, offering a tax-effective way to save.

The Outlook for Aspiring Single Buyers

The path to home ownership for single Australians is undeniably fraught with financial obstacles. The gap between the average single income and median property prices continues to widen, making the traditional 20 per cent deposit a monumental goal. While market dynamics and potential interest rate movements present ongoing uncertainty, it is crucial for aspiring single buyers to be fully aware of the government support schemes available. Understanding these programs is a vital first step in navigating this challenging property market.