First home buyers are still keen to gain a foothold in the market despite property price increases throughout Australia. Analysis by the Real Estate Institute of Australia (REIA) shows that first-home buyers aren’t afraid to take on substantial debt if it means they can buy property. FHBs are allocating larger proportions of their incomes to paying off a mortgage.

The average family income has increased 112.8% since 2001 but average home loan repayments have gone up 179.4%. The average home loan has increased from $157,239 to $548,323 and there are 67% more first-home buyers in the market now than 20 years ago.

REIA president Adrian Kelly says many first-home buyers are not afraid of taking on debt, as they want to escape the rent cycle and like the security of bricks and mortar.

Bernard Salt, executive director of The Demographic Group, chalks the dynamic up to the maturing millennial generation finally giving up their cosmopolitan inner-city lifestyles for a house in the suburbs.