home buyer loans surge as market participation collapses
New data shows that first-home buyer participation in the Australian property market has dropped significantly while debt levels for those who do enter the market have surged. Analysts suggest that government stimulus schemes have had mixed results and may be favoring higher-income buyers.
Why it matters
The report highlights the growing crisis of housing affordability and the potential failure of government interventions to support first-time buyers.
First-home buyer activity has plummeted in the past five years despite the government pouring billions into controversial buyer stimulus packages, while first-time buyer debt has exploded.
New figures from credit reporting agency Equifax have revealed first-home buyer loan sizes in multiple states ballooned by over $100,000, while demand for first-home loans in major states dropped by a third.
The average first-home buyer in South Australia and Queensland was in May seeking loans about $230,000 higher than they were back in 2021, the data showed.
First-time buyers in Western Australia were getting into even bigger debts, seeking out loans $250,000 higher than five years ago. The rises in NSW and Victoria were about $100,000 and $80,000, respectively.
The Albanese government’s 5 per cent deposit scheme has attracted controversy. Picture: Hilary Wardhaugh
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