A survey of first-time buyers across Australia has revealed that nearly 90% of first-time buyers are stressed about their ability to save and the time it takes, citing bills and household expenses as the biggest obstacles.

At the same time, 29 percent of first-time buyers are receiving some form of help from family, up from 21 percent last year.

Canstar's First-Time Homebuyer Survey 2023 shows that first-time buyers are saving an average of A$1,605 per month, an increase of A$188 from the same time last year.

The survey shows that the increase in savings has saved single homebuyers almost two years to build up a 20% deposit, but it still takes eight years and eight months.

And for a couple, the increase in savings cut almost a year off their saving time to just over four years.

Effie Zahos, Canstar's editor and financial commentator, said the savings figures show that the determination of first-time buyers is strong, despite the challenges of the cost of living.

"Property prices are continuing to rise, but rents have also risen to record highs," she said.

"Renters are undoubtedly feeling the pressure to get on the home ownership ladder. Nine out of ten potential first-time buyers are prepared to make the decision to purchase a home sooner rather than later.

"Significantly reducing their expenses is at the top of their home-buying plans, followed by buying an older home, and again by buying an apartment rather than a house.

A quarter of first-time buyers don't know how much they are saving and 13% say they can't afford to save.

Barriers to saving included bills and household expenses, followed by rent and eating out.

Ms Zahos said young people needed to be realistic about their savings.

"Focusing on what you can realistically save and being flexible with your schedule can take the pressure off until your finances improve and you can increase your savings balance," she said.

Parent banks have also changed, she said, with many parents offering "less risky" help, such as allowing their children to live at home rent-free, rather than emptying their pockets.

Research by the Australian Housing and Urban Research Institute (AHURI) at the University of Sydney and RMIT University shows a third fewer homebuyers are entering the market compared to previous generations.

The research shows that modern first-time buyers face three times the house prices of previous generations while earning only 1.6 times as much.

"Our research certainly shows that ownership rates for 30 to 34 year old households have fallen dramatically over the last 30 years; from 65% of those born in the mid to late 1950s becoming homeowners by the time they were 30 to 34 years old, to just 45% of those born in the mid to late 1980s," said Professor Stephen Whelan of the University of Sydney.

Professor Stephen Whelan of the University of Sydney said, "The fact that the decline in the ownership rate has coincided with a near-tripling of house prices suggests that rising house prices and declining affordability are linked to a delay in the entry of Australian households into the housing market.

"But more importantly, while this may in part simply represent a delay in home ownership for young Australians, our research suggests that as these younger cohorts age, they are less likely to 'catch up' and purchase a home."

Professor Whelan says this increases the likelihood that people who have retired but are still renting will fall into poverty.