Australian Home Prices Cross A$1 Million Mark Amid Deepening Housing Crisis
The average cost of a home in Australia has exceeded A$1 million for the first time, underscoring a worsening housing affordability crisis that is putting increasing financial pressure on everyday Australians.
New data from the Australian Bureau of Statistics (ABS) reveals the average residential property value rose to A$1,002,500 in the March 2025 quarter – a 0.7% increase from the previous quarter. This milestone comes as rising costs and limited housing supply continue to squeeze both buyers and renters across the country.
Australia already ranks among the least affordable housing markets globally. Property experts say the ongoing crisis stems from a combination of rapid population growth, tax incentives favouring investors, slow progress in building new homes, and chronic underinvestment in social housing.
New South Wales remains the most expensive state for home ownership, with average property prices reaching A$1.2 million. Queensland follows at A$945,000, while Western Australia and South Australia have also seen significant price increases, contributing heavily to the national uptick.
Despite property values climbing in every state and territory, ABS head of prices statistics Mish Tan noted that annual price growth is beginning to cool. Nevertheless, the overall trend remains concerning for many households.
Michael Fotheringham, Executive Director of the Australian Housing and Urban Research Institute, described the A$1 million average as both “compelling” and “concerning,” pointing to a long-standing imbalance between wage growth and property prices.
“This is not just an issue for low-income Australians anymore,” he said. “Middle-income earners are increasingly locked out of the housing market. The system is under immense strain.”
Comparative data shows Australia’s average home price now dwarfs that of the UK and Canada. In the UK, the typical home costs about £560,000, while Canada’s average is approximately A$763,000. Fotheringham notes that Canada faces similar affordability pressures, but the UK’s broader access to public and social housing gives it a different dynamic.
Australia, like the UK, has set aggressive housing development targets. The Albanese government has committed to delivering 1.2 million new homes over the next five years. However, industry stakeholders argue that planning laws and bureaucracy are obstructing progress.
Speaking on Tuesday, Prime Minister Anthony Albanese acknowledged the challenge and expressed a desire to streamline development processes. “We have to make it easier,” he said, referencing developers’ concerns that complex approval systems are inflating costs and causing delays.
With the housing crisis now affecting a broad cross-section of Australians, calls for structural reform are growing louder – both to increase supply and to make homeownership more attainable.
