First Home Buyer Prices by State: What Can You Afford in 2026?
Prices are from the Domain House Price Report, September quarter 2026. Scheme caps and state rules last checked 13 November 2026.
Most first home buyers ask the same question: what can I actually buy where I live? This page puts the median house and unit price in each capital city next to the 5% Deposit Scheme price caps, so you can see where the scheme works and where it gets tight.
The short answer: in every capital city, the median unit is under the scheme cap. The median house is over the cap in seven of eight capitals. That doesn’t mean houses are out of reach. It means you’ll usually be looking below the middle of the market, or in outer suburbs and regional areas.
Median prices vs the 5% Deposit Scheme caps
| Capital city | Median house | Median unit | 5% Deposit Scheme cap | 5% deposit on a median unit |
|---|---|---|---|---|
| Sydney | $1,661,167 | $820,890 | $1,500,000 | About $41,000 |
| Melbourne | $1,014,335 | $563,199 | $950,000 | About $28,200 |
| Brisbane | $1,152,122 | $783,357 | $1,000,000 | About $39,200 |
| Adelaide | $1,095,429 | $584,389 | $900,000 | About $29,200 |
| Perth | $1,115,227 | $659,561 | $850,000 | About $33,000 |
| Hobart | $790,155 | $584,127 | $700,000 | About $29,200 |
| Darwin | $752,478 | $454,732 | $750,000 | About $22,700 |
| Canberra | $1,025,084 | $485,276 | $1,000,000 | About $24,300 |
How to read this: a median is the middle price, so about half of homes sell for less. The scheme cap shown is for the capital city. Regional areas usually have a lower cap, and some regional centres share the capital city cap. See the 5% Deposit Scheme explained for every cap.
The 5% deposit figure is just the deposit. You’ll also need money for legal fees, inspections and any stamp duty.
What this means city by city
Sydney
The median house is about $160,000 over the $1.5 million cap. The median unit, at around $821,000, sits comfortably under it. For many Sydney first home buyers, a unit or townhouse is the most realistic first step. NSW stamp duty is nil up to $800,000, so a unit just over that pays reduced duty.
Melbourne
The median house is just over the $950,000 cap. The median unit, at around $563,000, is under Victoria’s $600,000 stamp duty exemption. That makes Melbourne units some of the best value for first home buyers in the country right now.
Brisbane
Brisbane house prices passed the $1 million cap, but the median unit, at about $783,000, is well under. Queensland’s $30,000 grant for new homes makes new units and house and land packages worth a look.
Adelaide
The median house is about $195,000 over the $900,000 cap. The median unit, at around $584,000, is well under. South Australia’s grant has no price cap for new homes.
Perth
Perth has the biggest gap between the median house and the cap: about $265,000. The median unit, at around $660,000, is under the $850,000 cap.
Hobart
The median house is about $90,000 over the $700,000 cap. The median unit, at about $584,000, is under it. Tasmania’s grant for new homes is $20,000.
Darwin
The median house is only about $2,500 over the $750,000 Darwin cap, so plenty of houses still fit. Units are the cheapest of any capital, at around $455,000. The NT’s $50,000 HomeGrown grant for new homes is the biggest in the country.
Canberra
The median house is just over the $1 million cap. The median unit, at around $485,000, is the second cheapest of any capital.
Grants and stamp duty by state, at a glance
| State | First Home Owner Grant (new homes) | First home buyer stamp duty |
|---|---|---|
| NSW | $10,000 (up to $600k buying, $750k building) | None up to $800k, reduced to $1m |
| VIC | $10,000 (up to $750k) | None up to $600k, reduced to $750k |
| QLD | $30,000 (under $750k) | New homes: none, no cap. Established: none to $700k, reduced to $800k |
| WA | $10,000 (cap $800k south of the 26th parallel) | None up to $600k, reduced to $800k |
| SA | Up to $15,000 (no price cap) | New homes: none, no cap |
| TAS | $20,000 | First home exemption ended 30 June 2026 |
| ACT | No grant | Concession with no price cap |
| NT | $50,000 HomeGrown grant (to 30 Sep 2027) | Check with NT Revenue Office |
Grants are mainly for new homes, and rules change often. For the full detail, see the First Home Owner Grant by state and stamp duty concessions by state.
What's happening in the market
Prices have dropped. In the September 2026 quarter, house prices fell in every capital city for the first time in 15 years, and unit prices fell everywhere except Darwin. Higher borrowing costs have reduced how much buyers can borrow.
For first home buyers, a falling market has two sides. You have more choice and more room to negotiate. But borrowing power is tighter, so getting the loan structure right matters more than ever. Don’t try to guess the bottom of the market. Buy when the numbers work for you and you can comfortably afford the repayments.
Real example: Sally and Peter
Sally and Peter (not their real names) bought the Inner West unit they had rented for 10 years, for $750,000, with a 5% deposit and no LMI. That’s under the Sydney median unit price and well under the $1.5 million cap. Their deposit was about $37,500. See the 8-step first home buyer roadmap.
How we help
We work with first home buyers in every state. We’ll check which caps, grants and stamp duty savings apply to the property you’re looking at, and find a lender that fits your situation. We also help you complete and submit the scheme and grant forms, and Myra from our team reviews every one before it goes to the lender, to avoid delays and rejections.
Start with first home buyer loans or call us on 02 7904 9560.
FAQs
Can I use the 5% Deposit Scheme if the median house is over the cap?
Yes. The cap applies to the property you buy, not the median. Plenty of homes sell below the median in every city.
Is the regional cap different?
Usually yes. Most states have a lower cap outside the capital, but some regional centres, like Newcastle, Geelong and the Gold Coast, share the capital city cap.
Should I wait for prices to fall further?
Nobody knows exactly when a market will bottom out. A better question is whether you can comfortably afford the repayments now, with a buffer. We’ll run the numbers with you.
Albert Waldron is a Credit Representative (407514) of Australian Finance Group Ltd, Australian Credit Licence 389087. This is general information only and does not take into account your personal circumstances. Please seek advice before acting. Median prices are Domain stratified medians for capital cities, September quarter 2026. Scheme caps, grants and stamp duty rules are set by governments and can change.