There’s a new kind of energy building in the property market and it’s not coming from investors or upgraders. It’s coming from a new generation of first home buyers who look nothing like the ones before them. At GEN Finance we’re seeing it first-hand: young professionals with strong dual incomes (often up to $250K–$300K combined) are entering the market earlier than expected. They’re educated, confident and financially savvy. Until recently, most were content to rent or live at home a little longer, building towards that “safe” 20% deposit.
But the landscape has changed and so has their mindset.
From Traditional to Transitional: How the First Home Buyer Has Evolved
The old first home buyer:
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Moderate earners, often under $180K combined income.
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Focused on small apartments or outer-suburb homes.
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Needed government support to bridge deposit gaps.
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Risk-averse — waiting to save 20% to avoid LMI.
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Motivated by necessity (escaping rent, needing space).
The new first home buyer:
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Dual-income professionals with higher salaries ($250K–$300K+).
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Comfortable savers, often already capable of a 20% deposit.
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Motivated by opportunity, not pressure.
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Using 5% deposit options with no LMI to buy sooner.
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Competing at higher price points ($750K–$1M+).
They’re not buying because they have to. They’re buying because it makes sense to — strategically, financially and emotionally.
Why Now? The Perfect Storm of Confidence
The shift has driven four key factors:
- Policy: The expanded First Home Buyer Guarantee removed the 20% deposit barrier for all incomes.
- Rates: Consecutive rate cuts have lifted borrowing power by around 5% per 0.5% cut.
- Wages: Incomes are growing faster than inflation for the first time in years.
- FOMO: As prices rise month after month, buyers are realising waiting could cost more than acting.
These ingredients have created a new class of confident, higher-income first home buyers, willing to act rather than wait.
The Market Impact
The ones who used to wait, saving for years to hit that 20% deposit or timing the market, are jumping in earlier. They’re financially ready, confident with smaller deposits and aiming higher than before. That shift has quietly changed the dynamic.
The “first home buyer market” used to mean modest price points and cautious decision-making. Now, it’s spilling into the mid-to-upper range, where $700K to $1M homes are attracting buyers who, a few years ago, wouldn’t have been there yet.
The result? More confident demand, faster movement, and growing competition, not just for entry-level homes, but for the next tier up.
What It Means for Buyers Right Now
High demand and low supply can sound intimidating but it’s also a sign of a healthy, confident market. Prices today are still below last year’s peaks, but they’re rising steadily. Every month, more buyers re-enter with renewed capacity and optimism. So, if you’re ready, this is your window. The buyers who get pre-approved now and understand their true borrowing power will be the ones who move fast when the right property appears.
