How Young Australians Are Navigating Housing Affordability in Wollongong
For many young Australians, home ownership can feel more like a distant dream than something within reach. Rising living costs, strong property price growth and slower wage increases have put real pressure on those hoping to buy their first home, including across Wollongong and the Illawarra.
Research by Deloitte Access Economics earlier this year highlighted just how challenging the landscape has become. Average home prices rose 67% from $548,000 to $915,000 in the decade to 2023, while average weekly incomes for Australians aged 21 to 34 grew just 20% over the same period.
The research also found that major life milestones like leaving home and starting a family are increasingly delayed. In 1981, around a third of 20 to 24-year-olds lived with their parents. By 2021, that figure had doubled to 63.8%. Today, around 40% of Australians aged 25 to 34 rely on family assistance to enter the property market.
With property prices continuing to rise across Australia and strong demand in areas like Wollongong, affordability remains a key barrier to entry. However, with the right strategy, guidance and loan structure, first-home buyers can still achieve home ownership sooner than they might expect.
Here are some of the options helping young buyers get into their first home.
Help to Buy
Help to Buy is a shared-equity scheme designed to make home ownership more accessible. Under this program, the Australian Government can contribute up to 30% for existing homes or 40% for newly built homes, meaning buyers may only need a 2% deposit.
Applications opened on 5 December 2025, with 10,000 places available each year. Income caps apply, currently set at up to $100,000 for individuals and $160,000 for couples or single parents.
This scheme can be particularly helpful for buyers priced out of higher-value markets while still wanting to purchase in areas close to employment hubs like Wollongong.
5% Deposit Scheme
The Australian Government 5% Deposit Scheme allows eligible first-home buyers to purchase with just a 5% deposit, without paying Lenders’ Mortgage Insurance (LMI).
There are property price caps, but no income limits and no cap on the number of places. Since launching in 2020, the scheme has helped more than 248,000 Australians take their first step into home ownership.
For many first-home buyers in Wollongong and the Illawarra, this scheme can significantly reduce the time it takes to save a deposit.
First Home Super Saver Scheme
The First Home Super Saver Scheme allows buyers to build a deposit using their superannuation. By making voluntary contributions to super, savings can grow faster due to concessional tax treatment.
When ready to purchase, eligible contributions and associated earnings can be withdrawn and put toward a first-home deposit.
Support from family
Family support plays a growing role in helping younger buyers enter the market. This may include:
A gifted deposit (usually supported by a statutory declaration)
A family loan under a private agreement
A guarantor arrangement using parental equity
Refinancing to release equity for assistance
Joint ownership arrangements
Each option comes with risks and long-term considerations, so it’s important to seek professional advice and ensure agreements are documented clearly.
Ready to get started?
Buying your first home can feel overwhelming, particularly in competitive markets like Wollongong. But you don’t have to navigate it alone.
As a Wollongong-based mortgage broker, we help first-home buyers understand their options, assess eligibility for government schemes, organise pre-approval and structure loans that support both today’s purchase and future goals.
If you’d like to explore your borrowing options and build a plan with confidence, get in touch and let’s chat.