Australia’s housing crisis continues to dominate headlines, and while long-term solutions remain uncertain, market analysts are already looking ahead.
Some reports suggest an upswing in house prices by 2026, but this recovery comes with a caveat: affordability could get even worse for many Australians.
Market Forecast: Moderate Growth, Uneven Impact
KPMG’s latest report points to steady national price growth over the next two years.
- 2025: House prices expected to rise by 3.3%
- 2026: Forecasted national increase of 6.0%
- Unit prices: Predicted to lift by 5.5% in 2026
Top-performing cities:
- Sydney: Leading with a 7.8% increase
- Melbourne: Projected rise of 6.0%
- Adelaide: Expected growth of 5.6%
Affordability: Still a Major Hurdle
Despite moderate growth forecasts, the housing crisis continues to put pressure on first home buyers.
- Mortgage rates remain high
- Supply is still limited
- Home values are already elevated in most cities
Some analysts believe house prices will climb further, but that won’t translate to better access for everyday buyers.
What’s Driving the Market?
Several factors are shaping the property landscape:
- Housing supply is projected to drop to its lowest level in over a decade
- Immigration-led population growth is fuelling demand
- Delays in construction due to labour shortages, rising material costs, and red tape
What’s the Government Doing?
There are efforts to address the supply shortfall—but progress is slow.
- The Housing Industry Association (HIA) has urged the Federal Government to act on planning reform and investment
- A national target of 1.2 million homes by 2029 has been set
- Meeting this goal remains a challenge amid ongoing construction and supply chain issues
Rental Market Remains Tight
Renters aren’t getting much relief either.
- Advertised rents have surged, particularly in Sydney and Melbourne
- Demand continues to outpace supply in major cities
- Vacancy rates remain low, pushing rental prices up even further
FAQ: Property Price Trends and Market Predictions in Australia
Will property prices in Australia double in the next 10 years?
Yes, it’s possible. If property values grow at an average rate of 7.2% annually, they could double over a decade. This rate aligns with long-term averages for well-located properties in major cities.
Do property prices really double every 7 years?
Not always. While the “7-year rule” is based on a 10.2% annual growth rate, actual performance varies depending on location, economic conditions, and supply-demand factors. Some areas meet this benchmark, while others lag.
What will houses be worth in 2030 in Australia?
Projections suggest the median dwelling price could reach around $1.1 million by 2030, assuming a consistent 7% annual growth rate for properties in key capital city locations.
Is 2025 a good time to sell a house in Australia?
It could be. Interest rate cuts may drive buyer demand, but factors like high household debt and low wage growth could balance the market. Sellers should prepare early, as buyers may act fast once conditions shift.
