Adam Empringham,
Director of Sales at Image Property.
Why first home buyers and investors will go head-to-head in 2026
The Australian property market is entering a new phase in 2026, and one of the most noticeable shifts will be increasing competition between first home buyers and investors.
For several years, higher interest rates and affordability pressures slowed activity from both groups. But as lending conditions stabilise and confidence returns, these buyers are likely to re-enter the market at the same time – often targeting the same properties.
Across many suburbs in South-East Queensland, this could mean stronger competition for entry-level homes.
Two Buyer Groups Targeting the Same Properties
First home buyers and investors may have different motivations, but the properties they pursue are often very similar.
Entry-level houses, townhouses and well-located units appeal to both groups. These homes are typically more affordable, easier to maintain and positioned close to transport, employment hubs and lifestyle amenities.
For investors, they often provide reliable rental demand and long-term growth potential. For first home buyers, they offer a realistic entry point into the property market.
When both groups become active at the same time, competition naturally increases.
Recent national data reflects this shift. According to Domain research, investors currently account for around 41 per cent of mortgage demand, while first home buyers represent roughly 22 per cent. This means investors currently make up a significantly larger share of buyer activity, placing additional pressure on entry-level housing.
Rental Market Pressure Is Bringing Investors Back
Australia’s tight rental market is another key factor drawing investors back into property.
Vacancy rates remain low across many parts of the country, while rental demand continues to outpace supply. For investors, this creates favourable conditions for stable rental income and long-term growth.
Many investors who paused their plans during the recent interest rate cycle are now reassessing the market as lending conditions become clearer.
For some, 2026 is shaping up as a window to re-enter the market.
For first home buyers, the challenge is that investors often have more experience navigating competitive conditions, which can make securing property more difficult when both groups are targeting the same homes.
First Home Buyers Are Feeling the Pressure to Act
At the same time, many first home buyers are reaching a point where waiting no longer feels like the best option.
After watching property values rise over several years, some buyers are concerned that delaying further could make entering the market even harder.
Government initiatives such as low-deposit schemes and shared equity programs are also helping some buyers move forward sooner.
While these programs are designed to support entry into the market, they can also increase demand in lower price brackets – the same segment where investors are active.
Population Growth Is Intensifying Demand in South-East Queensland
These trends are particularly noticeable in South-East Queensland.
The region now has more than 4.1 million residents and continues to grow rapidly. Queensland added almost 98,000 new residents in the year to June 2025, reflecting strong migration and continued demand for housing across the state.
Many new residents are choosing Brisbane, the Gold Coast and the Sunshine Coast for lifestyle and employment opportunities.
As population increases, demand for both rental and owner-occupied housing grows. This places additional pressure on entry-level properties, where both investors and first home buyers are active.
Looking Ahead
While the property market rarely moves in straight lines, 2026 is shaping up to be a year of returning confidence.
With investors reassessing opportunities and first home buyers looking to secure their place in the market, competition for entry-level homes is likely to increase.
For buyers, preparation and understanding the market will be key.
And for sellers, it may present an opportunity to enter a market where demand is coming from multiple directions.
Speaking with a trusted local property expert can help provide clarity on current market conditions and what they may mean for the next move.
