This influx of investor capital has resulted in nearly 200,000 new loans to landlords during the same period, the highest since 2022. In contrast, the number of new first-home mortgages has declined to 116,000, highlighting the growing challenges faced by first-time buyers in securing properties.

Experts suggest that falling interest rates have made borrowing more accessible for existing homeowners and investors, providing them with financial relief and increased purchasing power. This dynamic has created a competitive environment where first-home buyers struggle to compete with seasoned investors who often have greater financial resources and equity.

The heightened competition is particularly evident in the lower-priced housing segments and more affordable regions. Investors are increasingly targeting these areas, leading to a reduction in available properties for first-home buyers and driving up prices.

In response to these challenges, first-home buyers are exploring alternative strategies to enter the market. Some are considering purchasing new builds, which may offer incentives and less competition from investors. Others are adopting the 'rentvesting' approach, where they rent in their preferred location while investing in properties in more affordable areas.

Financial advisors recommend that first-home buyers conduct thorough research, seek professional guidance, and remain flexible in their property search criteria. Understanding market trends and being prepared to act swiftly can enhance their chances of securing a property in this competitive landscape.

In conclusion, the surge in property investor activity has intensified competition in the Australian housing market, posing challenges for first-home buyers. By adopting strategic approaches and staying informed, first-time buyers can navigate these challenges and work towards achieving homeownership.