First Home Buyer Scheme Sparks Demand for Adelaide’s More Affordable Homes
Australia’s first home buyer market is heating up again and Adelaide is one of the cities likely to feel the effects most strongly.
New research from Cotality shows that homes priced under the expanded Home Guarantee Scheme price caps have been outperforming the broader market since September 2025, with stronger growth recorded in the price brackets most relevant to first home buyers.
What’s driving the surge?
The expanded 5% deposit guarantee is a key reason for continued momentum in the more affordable end of the market. Under the Home Guarantee Scheme, eligible first home buyers may be able to purchase homes prcied up to $900,000 in metropolitan Adelaide with as little as a 5% deposit, with the government providing a guarantee that can reduce the need for lenders mortgage insurance (LMI). With more first-home buyers expected to enter the market in 2026, competition is rising in the price brackets where the scheme applies.
In the December quarter 2025, homes priced within the scheme’s eligibility limits recorded +3.6% growth, compared to +2.4% for higher-priced properties. In simple terms: when buyers can enter the market sooner with a smaller deposit, demand tends to rise fastest in the affordable price ranges, putting extra pressure on entry-level and mid-market homes.
Why this matters for Adelaide and surrounds
Adelaide remains one of Australia’s more affordable capital city markets, meaning a larger proportion of properties fall into price ranges that appeal to first home buyers.
That makes suburbs across Adelaide’s outer growth corridors particularly attractive to first home buyers, including:
North: Munno Para, Andrews Farm, Angle Vale, Blakeview and surrounds
South: Morphett Vale, Christies Beach, Seaford Meadows, Hackham and surrounds
West: Semaphore, Taperoo, Woodville Gardens and surrounds
North-East: Modbury, Ridgehaven, Holden Hill and surrounds
Entry-level family homes, townhouses and smaller blocks or low-maintenance builds are seeing especially strong demand.
As more buyers concentrate on properties that fall under scheme caps, the likely result is faster movement, multiple offers, and upward pressure on prices in Adelaide’s lower-to-mid price segment.
What buyers should keep in mind
If you’re a first home buyer looking in Adelaide right now, it’s worth preparing for:
Shorter days on market
More competition at opens
Needing finance pre-approval earlier
Acting quickly when the right home appears
What this means for sellers
Adelaide’s market has remained resilient and consistent. Strong first home buyer activity is adding even more competition in the lower-to-mid price bracket. For sellers in suburbs where entry-level buyers are active, this can mean more inspections, more early interest, more competitive offers and faster sales timeframes, especially for well-presented, move-in-ready homes.
Thinking of buying or selling in Adelaide?
If you’re thinking about buying or selling in 2026, now is the perfect time to discuss your options. Key and Stone Property can help you understand what your home is worth in today’s market or guide you through a confident first home purchase. Get in touch with us to book a complimentary property appraisal, market update or to simply have a chat about your property journey.
If someone you know is thinking of selling in 2026, we’d also love the opportunity to help. Refer someone to Key and Stone Property and as a thank you, you’ll receive a $500 gift voucher when their sale successfully settles. FInd out more about our referral program here.
Readers should seek independent legal advice tailored to their specific circumstances. Key and Stone Property Pty Ltd do not accept any liability for the accuracy or applicability of the information provided herein. This article is intended as a general guide only.