The median house price in Australia hits a record high $1.113 million

A sprawl of suburban Sydney houses with green up arrows floating above the roofs.

Released this week, the Domain House Price Report 2024 announced a new record for the median house price in Australia’s combined capital cities – $1,112,575 – after a year-on-year (YOY) gain of 8.9% in March 2024.

Wowsers. That sure is a big number. But it’s not the biggest number in the report.

Sydney, the city otherwise known as Australia’s property darling, recorded a monumental median price of $1,627,625, growing 11.1% YOY. 

According to the report, Perth’s median house price grew the most in the 12 months to March 2024 at a YOY rate of 16.6%. This now takes the median house price in Perth to $777,921 – just shy of a million dollars less than Sydney.

Adelaide (15.8%) and Brisbane (12.5%) also recorded significant house price gains over the last 12 months. 

The other capital cities failed to show the same enthusiasm for property price growth, though still recorded gains of between 0.7 - 1.9% YOY.

This is fantastic news for homeowners and investors, as it means there’s a good chance their property has increased in value since they bought it. For those looking to buy, on the other hand… good luck! 

A 20% deposit on the median home now costs more than two and a half times the median salary 

Medians, as you might already know, refer to the middle of a set of data. So, this means that half of all houses in Australia’s capital cities now cost more than $1.113 million. 

If you were looking to buy a house without paying for lenders mortgage insurance (LMI), you’d need to cobble together a 20% deposit of $222,600. In other words, about 2.7 times the median full-time worker’s annual earnings (about $83,000), according to the Australia Institute

Let’s take a look at how long it might take to save this sort of money. 

How long will it take you to save up the median Australian capital city house deposit of $222,600?

If you saved:
You’d be saving:
It would take you:
$200/month 
$2,400/year
93 years to save $222,600
$500/month
$6,000/year
37 years to save $222,600
$1,000/month
$12,000/year
18.5 years to save $222,600
$1,500/month 
$18,000/year
12 years to save $222,600
$2,000/month
$24,000/year
9 years to save $222,600

A Mozo survey, conducted as part of the 2024 Mozo Savings Report, found that only 9% of respondents reported saving between $1,000 to $2,000 per month for a house deposit. 

In fact, you’re much more likely to find that the majority of Australians are saving less than $500 per month to put towards their home deposit, and 41% save less than $200 per month. 

It’s almost enough for some to give up on the very concept of homeownership in this country. And some already say they have. 

Reasons Aussies aren’t saving for a house deposit

The survey also asked Australians why they weren’t saving for a house deposit. 

Over one-third of Australians say they’re not paid enough to save (36%). Another third say that they’re single and unable to afford it (34%). 

For 13% of respondents, it’s a matter of being unable to secure a home loan, and 12% say they’re prioritising quality of life over a mortgage. 

But what can you do if you still want to buy a home in Australia?

Home buying tips to navigate a challenging housing market

Take advantage of government housing schemes

Check out the government-led initiatives available to you, such as the First Home Guarantee Scheme, which allows eligible Aussies to buy or build a new home with a deposit as low as 5% (or 2% in some cases). 

Just be aware that lower deposits may help you get your foot in the door earlier, but often result in higher interest repayments on your home loan. 

Additionally, federal Labor’s new Help to Buy scheme will likely roll out soon, as housing affordability issues continue to snowball. The exact details about the scheme, including eligibility and loan conditions, aren’t available yet, but we’ll keep an eye on it.

Consider rentvesting

If you can’t afford to buy in your dream suburb, consider rentvesting as a way to get into the market. 

This strategy involves investing in cheaper property outside of your preferred suburb and renting it out to tenants while you continue to rent where you need to live.

As you pay off your investment home loan, your equity could grow and the value of your investment could rise, meaning you then have the chance to sell that property and buy a home in your ideal suburb.

Consider buying with friends or family

Pooling your deposit money with friends and family to purchase a property is another viable option if you don’t have the funds to buy independently. 

Just make sure to formalise any agreements through legal documentation to maintain fairness and accountability, and reduce the risk of any financial fallouts.

Look into low-deposit home loans

If you can’t afford a full 20% deposit, compare low-deposit home loans

While you may still need to pay LMI, these home loans are purpose-built for those who can afford repayments, but can’t save the full deposit.

Just be aware that you’ll have a higher loan-to-value ratio (LVR) if you have a smaller deposit. This often means the interest rates you’re charged are higher too. 

Looking at the Mozo database, the average variable home loan rate for someone with 80% LVR is 6.82% p.a. (for a $400k loan). However, those with a lower deposit and higher LVR are looking at an average rate of 7.10% p.a. (90% LVR) or 7.35% (95% LVR). 

If you’re interested in doing some research into interest rates, make sure you compare home loans and use a borrowing power calculator to help work out what you can comfortably afford to buy.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 473 home loans.
Last updated 15 June 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.