The national median dwelling price in Australia has risen to approximately A$930,000 ($605,000), according to CoreLogic data for Q1 2026. In Sydney, the median house price exceeds A$1.4 million, making it the second least affordable major city globally behind Hong Kong by price-to-income ratio. Nationally, the median dwelling price is approximately 9 times the average full-time earnings of A$103,000, up from a ratio of 6.5 a decade ago.
RBA Rate Policy
The Reserve Bank of Australia cut the cash rate to 4.1% in February 2026, its first reduction since the hiking cycle began in May 2022. However, the impact on housing affordability has been minimal: a 25 basis point cut reduces monthly repayments on a typical A$700,000 mortgage by approximately A$108. With variable mortgage rates still above 6%, approximately 880,000 Australian households are experiencing mortgage stress, defined as spending more than 30% of gross income on housing costs.
Supply and Migration
Australia's population grew by approximately 550,000 in the year to June 2025, driven primarily by net overseas migration of approximately 440,000. Housing completions, however, totalled approximately 170,000, well below the government's target of 240,000 per year (part of its 1.2 million homes by 2029 agenda). The gap between population growth and housing construction has widened the national rental vacancy rate to just 1.0%, compared to a healthy equilibrium rate of 3-4%.
Construction costs have risen approximately 35% since 2020, driven by labour shortages and materials inflation. Builder insolvencies have risen, with approximately 2,000 construction companies entering administration in 2025, leaving thousands of homes partially built.
Rental Crisis
National rental asking prices have risen approximately 40% since 2020. In Sydney and Melbourne, median weekly rents for a two-bedroom apartment are approximately A$650 and A$550 respectively. Some regional areas that experienced pandemic-era migration booms, such as Byron Bay and the Gold Coast, have seen even sharper increases. The Grattan Institute estimates approximately 640,000 low-income households are in housing stress.
For Australian property data, visit CoreLogic Australia. For RBA monetary policy, see Reserve Bank of Australia.