To Buy or to Wait? A 2026 Guide for First Home Buyers in Australia

This guide explores the critical question facing Australian first home buyers in May 2026: enter the market despite a high 4.35% RBA cash rate, or wait? Driven by a structural housing shortage and a critically low 1.0% national rental vacancy rate, the analysis reveals that for financially prepared buyers, the cost of waiting indefinitely often outweighs the benefits. The report provides tailored, city-specific strategies—recommending immediate action in fast-growing Perth and Brisbane, highlighting Melbourne's current value and affordability, and advising a cautious, wait-and-see approach for Sydney ahead of potential tax reforms in the May 12 federal budget