Australian Dream Slips Further Away as Average Home Price Hits A$1 Million

For the first time in history, the average Australian home now costs over A$1 million, deepening the country’s housing affordability crisis. New data from the Australian Bureau of Statistics reveals that the national average hit A$1,002,500 in the March quarter, a 0.7% rise from the previous quarter.

The soaring prices come as no surprise to housing experts, who point to long-standing problems: a shortage of housing, population growth, tax incentives for investors, and underinvestment in social housing. Even middle-income families are now struggling to buy or rent a home.

New South Wales remains the most expensive state, with an average home price of A$1.2 million, followed by Queensland at A$945,000.

Michael Fotheringham from the Australian Housing and Urban Research Institute called the milestone “daunting,” reflecting years of price growth outpacing wages. Australia is now one of the least affordable housing markets in the developed world.

Rental stress is also growing, with limited social housing making matters worse. While Canada and the UK face similar issues, Australia’s market is particularly strained due to limited government-owned housing and complex development laws.

Prime Minister Anthony Albanese, recently re-elected with housing as a top campaign issue, has vowed to cut red tape to help developers build faster. But critics argue more needs to be done — especially in the social and affordable housing sectors.