Is Brisbane Housing Affordable in 2025?

Key Takeaways:

• Brisbane’s median house price in 2025 is around $850,000, with units averaging$550,000.
• The price-to-income ratio is about 7.7, making affordability a challenge for many first home buyers.
• Saving for a 20% deposit means aiming for$170,000 for a house or$110,000 for a unit.
• Government incentives like the First Home Owner Grant and First Home Guarantee can help buyers get started.
• Interest rates are steady, with most variable loans between 5.8% and 6.2%.
• Suburbs like Chermside, Carina and Oxley offer more affordable entry points.
• Don’t forget to budget for hidden costs like stamp duty, legal fees and ongoing expenses.
• Careful planning, research and expert advice can make home ownership achievable—even in a competitive market.
  
  

Starting your home buying journey in Brisbane in 2025 is a big step, and having a clear picture of housing affordability can help you plan with greater confidence.

What Does ‘Affordable’ Really Mean in 2025?

Affordability is a word that gets used a lot, but what does it actually mean for first home buyers in Brisbane this year? In simple terms, housing affordability refers to the relationship between household income, the cost of buying a home, and the ongoing expenses of home ownership. For many, the dream is to find a property that fits both their needs and their budget, without stretching finances to breaking point.

Brisbane’s Property Market: A Snapshot

Brisbane has long been considered one of Australia’s more accessible capital cities for first home buyers, but the landscape has shifted in recent years. The median house price in Brisbane reached around$850,000 in early 2025, with units averaging closer to$550,000. While these figures are still below those seen in Sydney and Melbourne, they represent a significant increase compared to just a few years ago.

What’s Driving Prices Up?

Several factors have contributed to Brisbane’s rising property prices. Population growth, interstate migration and strong demand for lifestyle suburbs have all played a part. The city’s appeal has only grown since the announcement of the 2032 Olympics, with infrastructure projects and job opportunities attracting more people to the region. Low vacancy rates and limited housing supply have also put upward pressure on prices, making competition fierce for entry-level homes.

How Do Wages Compare to House Prices?

One of the key measures of affordability is the ratio of house prices to household income. In 2025, the average household income in Brisbane is estimated to be around$110,000 per year. With the median house price at$850,000, this means the price-to-income ratio sits at roughly 7.7. Financial experts generally consider a ratio above 6 to be a sign of housing stress, so it’s clear that many first home buyers are feeling the pinch.

Deposit Hurdles: Saving for a Home

Saving for a deposit remains one of the biggest challenges for first home buyers. With lenders typically requiring a 20% deposit to avoid lenders mortgage insurance, buyers are looking at saving at least$170,000 for a median-priced house. For units, the deposit requirement is closer to$110,000. This is a significant sum, especially for those also managing rent and living expenses.

Government Support and Incentives

The good news is that there are several government schemes designed to help first home buyers get a foot on the ladder. In Queensland, eligible buyers can access the First Home Owner Grant, which offers$30,000 towards the purchase of a new home valued under$750,000. There are also stamp duty concessions and the federal First Home Guarantee, which allows some buyers to purchase with as little as a 5% deposit. These incentives can make a real difference, but it’s important to check eligibility criteria and understand how each scheme works.

The Cost of Borrowing: Interest Rates in 2025

Interest rates have a major impact on affordability. After a period of rapid increases, the Reserve Bank of Australia has kept the cash rate steady in early 2025, with most lenders offering variable home loan rates between 5.8% and 6.2%. While this is higher than the historic lows seen during the pandemic, it’s still manageable for many buyers, provided they budget carefully and allow for potential rate rises in the future.

Renting vs Buying: Weighing Up the Options

With property prices on the rise, some first home buyers are questioning whether it’s better to keep renting or take the plunge into ownership. In 2025, the median weekly rent for a house in Brisbane is around $650, while units average$520 per week. While renting can offer flexibility, buying a home allows you to build equity and provides long-term security. The decision will depend on your personal circumstances, financial goals and readiness to commit to a mortgage.

Suburbs Offering Value for Money

Not all areas of Brisbane are equally expensive. While inner-city suburbs and riverside locations command premium prices, there are still pockets of relative affordability. Suburbs such as Chermside, Carina and Oxley offer median house prices below$750,000, making them popular choices for first home buyers. Units in suburbs like Nundah, Zillmere and Mount Gravatt also present more accessible entry points. It pays to be flexible with your location and consider up-and-coming areas that may offer better value.

Hidden Costs to Consider

When budgeting for your first home, it’s important to factor in more than just the purchase price. Additional costs include stamp duty, legal fees, building and pest inspections, loan application fees and moving expenses. Ongoing costs such as council rates, insurance and maintenance should also be part of your calculations. Being prepared for these expenses will help you avoid surprises and set you up for a smoother transition into home ownership.

Tips for Improving Your Buying Power

If you’re finding it tough to break into the market, there are steps you can take to improve your chances. Start by reviewing your budget and cutting unnecessary expenses to boost your savings. Consider buying with a partner or family member to increase your borrowing capacity. Explore different loan options and speak to a mortgage broker about products that suit your needs. Most importantly, do your research and be patient—finding the right home can take time, but it’s worth the effort.

How Mountway Finance Can Help

Navigating the Brisbane property market in 2025 can feel overwhelming, but you don’t have to do it alone. At Mountway Finance, we specialise in helping first home buyers understand their options, access government incentives and secure the right loan for their needs. Our team is here to guide you through every step of the process, from saving for a deposit to settlement and beyond. We believe that with the right advice and support, home ownership is within reach—even in a challenging market.

Final Thoughts

While Brisbane’s housing market has become more competitive in 2025, there are still opportunities for first home buyers who are well-prepared and informed. By understanding the factors that influence affordability, exploring all available support and seeking expert guidance, you can take confident steps towards owning your first home.