Why first home buyers should feel optimistic in 2025

Let’s be honest – buying your first home has never been a walk in the park.

But if you’re a first home buyer in 2025, here’s the good news because despite the headlines, the tide is turning in your favour.

Yes, saving for a deposit still takes time. And yes, interest rates surged in 2022 and 2023, making mortgage serviceability tougher than it’s been in decades.

But here’s the twist – according to the latest PropTrack-CommBank First Home Buyer Report – more first home buyers entered the market last year than during similar annual periods in the 2010s. That’s not just encouraging, it’s proof that opportunity is alive and well.

So, what’s driving this momentum?

For starters, mortgage rates are easing. The RBA has already cut rates, and further reductions are expected. That means more homes will fall within reach for buyers on average incomes.

Combine that with government support schemes, low-deposit options, and Lenders Mortgage Insurance, and the deposit hurdle becomes far more manageable.

We’re also seeing smart strategies emerge. Rentvesting – where you rent where you want to live and buy where you can afford – is gaining traction. Flexibility around location and dwelling type is helping buyers tap into more affordable suburbs and apartment markets.

And Melbourne, interestingly, is leading the charge. The report highlights that nearly half of the top 20 first home buyer hotspots are in Melbourne’s outer suburbs, where affordability is stronger than in Brisbane, Adelaide, or Perth.

What I love most is the resilience and creativity of today’s buyers. They’re not waiting for perfect conditions, they’re adapting, leveraging support, and making moves. That’s the mindset that builds wealth over time.

At Metropole, we always say: don’t wait to buy real estate, buy real estate and wait. And for first home buyers, 2025 could be the year to start that journey.

With improving affordability, strategic buying options, and a market that’s slowly tilting back in your favour, the window of opportunity is opening wider.