First home buyers get edge over investors in Adelaide
For the first time in many years, first home buyers are better placed than investors to secure an Adelaide property.
Adelaide’s property market has been one of the most stable and resilient across the nation, recording consistent growth in recent years.
With median house prices climbing yet remaining more affordable than in Sydney, Melbourne or Brisbane, Adelaide has increasingly drawn the attention of both investors and aspiring first home buyers.
The outcome of the 2025 federal election has further bolstered first home buyer (FHB) confidence, as the newly elected government committed to a suite of housing affordability measures aimed at easing the pathway into home ownership—particularly in cities like Adelaide, where population growth and tight housing supply have placed upward pressure on prices.
Adelaide Market Snapshot
- Median house price (2025): Approximately $750,000 (up from $655,000 in 2023)
- Annual growth rate: 5 per cent–7 per cent across metro suburbs
- Rental vacancy rate: Below 1 per cent, indicating strong demand
This sustained growth is attributed to infrastructure investment, interstate migration, and relative affordability when compared to Australia’s eastern capitals.
Post-election housing reforms
The newly formed federal government has rolled out a range of initiatives expected to directly benefit first home buyers in Adelaide, placing them in direct competition with investors for more affordable housing stock.
1. Expansion of the Help to Buy scheme
The government will co-purchase up to 30 per cent of a home with eligible buyers, allowing them to enter the market with a significantly lower deposit and mortgage. This shared equity scheme could see thousands of Adelaide residents purchase a property with as little as a 2 per cent deposit.
2. Increased First Home Guarantee places
The cap on annual places under the First Home Guarantee (formerly First Home Loan Deposit Scheme) has been lifted, giving more South Australians access to government-backed loans with only a 5 per cent deposit and no lenders mortgage insurance (LMI).
3. Regional Housing Growth Fund
A $2 billion investment into new housing supply in regional and peri-urban areas—including Adelaide’s outer suburbs—aims to increase housing stock and ease affordability pressures.
4. National rental affordability measures
Although primarily targeted at tenants, long-term rental assistance and incentives for build-to-rent projects could free up existing homes and reduce competition in the first-home buyer market.
What this means for first home buyers in Adelaide
For many South Australians, these federal initiatives are a timely intervention.
Adelaide’s median prices, while more attainable than Sydney’s or Melbourne’s, are still out of reach for households with limited deposit savings. By reducing the deposit hurdle and ongoing repayment burden, the election reforms are expected to increase access to housing finance and stimulate new housing supply.
Where are investors competing with FHBs?
Investors and FHBs are each targeting suburbs with low entry prices, good infrastructure and access to employment so the overlap of competition on the same properties is inevitable. Some of the key locations include:
Who has the advantage in this market?
First home buyer budgets are bolstered by government grants and incentives that investors just can’t access.
Furthermore, higher interest rate environments have investors’ budgets more limited than ever, with lower borrowing power and serviceability.
For the first time in many years, first home buyers are in the better position.
