We need more homes, not just more buyers - but that doesn’t mean you should wait

10.10.2025

The federal government’s expansion of the Australian Government 5% Deposit Scheme has been making headlines - and for good reason. On one hand removing the income cap and allowing buyers to enter the market with just a 5 per cent deposit is a meaningful step, especially for those who’ve been struggling to get a foot on the property ladder.

On the other hand, there’s still the broader challenge of housing supply - and the pressure that limited stock places on prices. But it’s worth recognising the real difference that this scheme has made to more than 185,000 Australians already. For many, it’s been the difference between dreaming of a home and actually owning one. 

On the first day of the expanded scheme, we helped a couple secure approval for a land and home package in Melbourne’s south-east for around $830,000 - a purchase that would’ve been out of reach under the previous $800,000 cap. With Victoria’s increase to $950,000, they were able to move forward with greater confidence. When buyers take the first step toward homeownership, especially with higher price points now in reach, it’s important they feel supported. We work closely with customers to ensure they understand their commitments and can make the numbers work - not just today, but sustainably into the future.

But while the scheme is opening doors for many first home buyers, we know that housing supply must keep pace. Demand for homes is rising – not just in volume, but in diversity. Smaller households and population growth mean we need more homes, and the right types of homes: medium-density options that reflect modern living. If we look at the current state of the market, national dwelling prices rose 0.8% in September - the strongest monthly gain in nearly a year - and are up 4.9% year to date. While auction clearance rates have lifted to 71.9% nationally. 

Coordinated action is essential to meet these needs. Governments and industry need to work together to streamline planning and embrace innovation. Ensuring Australians have access to housing they can afford is a major focus for NAB. It’s a complex challenge - one we believe every organisation with the ability to contribute should be leaning into. We’re working on ways to make a meaningful and lasting impact.

While these longer-term solutions take shape, aspiring homeowners shouldn’t feel they have to wait on the sidelines. To help inspire first home buyers, NAB has released a list of the top 10 postcodes where homes under $650,000 come with great transport links and lifestyle amenities: 

3029 – Hoppers Crossing, Tarneit, Truganina (Melbourne’s west) 
3064 – Craigieburn, Mickleham (Melbourne’s north) 
4350 – Toowoomba and surrounds (Regional Queensland) 
3024 – Wyndham Vale, Manor Lakes (Melbourne’s west) 
3338 – Melton South, Weir Views (Melbourne’s west) 
3030 – Werribee, Point Cook (Melbourne’s west) 
4740 – Mackay (North Queensland) 
3350 – Ballarat (Regional Victoria) 
6210 – Mandurah, Meadow Springs (Western Australia) 
4680 – Gladstone, Tannum Sands (Queensland)

Yes, we need more homes. But that doesn’t mean your property dreams have to be put on hold - sometimes, the best time to buy is simply when you’re ready - and when you’ve found a way to make the numbers work. 

Notes to editors

• NAB home lending data based on purchases of houses and town houses from August 2024-August 2025. 

Affordable Housing