Perth’s entry-level property prices double over five years
The latest Cotality housing affordability report also shows the national house value-to-income ratio reaching 8.2 in September 2025, compared to a 20-year average of 6.8. It now takes 11 years to save a 20 per cent deposit and 45 per cent of gross household income is required to pay off a new mortgage.
Ray White Group chief economist Nerida Conisbee said home ownership rates were falling, particularly among younger Australians, and affordability pressures were a clear driver of the trend.
“Rising price-income ratios indicate that structural barriers to entry are increasing. However, the market continues to trade,” he said.
“Prices remain flexible and first home buyers are still active.
“The problem is not that affordability is increasing, but that access is becoming more conditional. Price-to-income ratios highlight pressure but do not explain how participation is maintained.”
The latest Domain data shows the average first homebuyer WA couple aged 25 to 34 will take five years and four months to save a 20 per cent deposit for an entry-level home in Perth.
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That same couple would spend 42 percent of their income on mortgage repayments on that home.
Conisbee said first home buyers generally weren’t buying the average home.
“They’re buying from the lower half of the price spectrum. As affordability pressures increase, they’re moving further down that spectrum,” he said.
“This is seen in sales data. Over the last decade, the number of homes sold for under $750,000 nationally has fallen sharply, from around 248,000 in 2015 to around 153,000 in 2025.”
“Entry-level single-family housing has contracted significantly. In contrast, unit sales under $750,000 have continued stronger, growing from about 77,000 in 2015 to near 96,000 in 2025.”
