Australian home values have soared by 39.1% in the last five years, according to CoreLogic data, indicating a median dwelling value increase of approximately $230,000. The latest CoreLogic April Housing Chart Pack records this jump in house prices, with the average home price having risen from 4.6 times the median income in 2001 to 6.5 in 2020, before reaching a record high of 8.0 at the end of 2024.
CoreLogic research director, Tim Lawless, notes that while the percentage increase over the last five years may seem modest compared to the peaks of the early 2000s and late 1980s, when adjusted for the current median value, the rise is equivalent to a $230,000 increase. In contrast, the five-year period ending in December 2003 only showed a $90,000 lesser increase of $140,000, and the March 1989 increase was equivalent to a $60,000 boost in median value.
Housing affordability has hit record lows, as stated by Lawless, with other indicators such as debt servicing, saving for deposits, and rental income also at all-time highs. This highlights a significant gap as housing values have risen much more rapidly than incomes. The considerable growth in housing values can be traced back to enduring demand-supply imbalances and long-term trends of reduced interest rates and increased household debt.
Sydney remains the least affordable housing market among capital cities, with a ratio of housing values to incomes reaching 9.8, followed closely by Adelaide at 9. Regional New South Wales and Brisbane follow with ratios of 8.9 and 8.2, respectively. Conversely, Darwin is the most affordable with a dwelling value to income ratio of just 3.9, reflecting lower property values and higher incomes.
CoreLogic economist Kaytlin Ezzy attributes the 39.1% value growth over the past five years to strong housing demand, limited supply, and a robust economy. Despite some brief periods of decline, values have faced continuous upward pressure due to low stock levels and increased demand. However, this growth cycle remains moderate compared to earlier times when financial deregulation, strong economic growth, and favorable demographic changes significantly drove value growth.
Source: https://www.theguardian.com/australia-news/2025/apr/09/australian-median-home-value-increased-about-230000-in-past-five-years-data-shows
