The Average Australian Home Now Costs $1 Million

Australia has reached a major milestone with the average price of a home across the country surpassing $1 million for the first time. According to data from the Australian Bureau of Statistics (ABS), the national average property price now stands at $1,002,500. It’s a figure that shows how far property values have increased and how deep the affordability crisis is running across the country.

The national picture

Every state and territory saw home prices rise but the biggest jumps came from Western Australia, South Australia, and Queensland. These states have been key players in recent quarterly growth, even as the overall pace of annual increase started to cool off. Property prices rose by 5.9% between March 2024 to March 2025, a noticeable decrease compared to the 9.5% surge seen the year before.

New South Wales still has the highest property prices, with an average of $1.2 million. Interestingly, Queensland has leapfrogged into second place at $945,000, a reflection of rapidly rising demand and value across the Sunshine State.

Property in New South Wales

New South Wales continues to be ground zero for Australia’s housing affordability dilemma. Sydney has long been one of the least affordable cities in the world and that isn’t changing anytime soon. First time buyers and middle income earners in NSW are finding it increasingly hard to get a foot on the property ladder.

Despite government efforts such as shared equity programs and incentives for low deposit loans, progress has been slow. Complicated planning regulations and bottlenecks in development approvals are making it difficult to get new housing projects off the ground. These systemic hurdles add delays and costs that affect the whole housing market.

What is causing the affordability crisis?

The housing crunch isn’t just affecting those on lower incomes anymore. Middle class residents are also feeling the pressure as Australian property prices continue to outstrip wage growth. Experts point to several long standing issues such as a lack of supply, strong population growth, investor-friendly tax settings and decades of underinvestment in public and affordable housing.

The government has committed to building 1.2 million new homes by mid 2029 but large-scale developments are not quick fixes. Many of the policies currently on the table may not move the needle significantly in the short term.

How Australia compares to the rest of the world

Australian property prices and its new average home price is significantly higher than that of similar countries. In the UK, the average home price is $560,000. In Canada, it’s closer to $763,000. One big difference is Australia’s comparatively low stock of public and social housing which leaves more people dependent on the private market and feeling the squeeze.

Renters are feeling it too

It isn’t just buyers who are struggling. Renters are facing their own crisis with vacancy rates tightening and costs rising fast. Lower income households are being pushed into increasingly insecure and unaffordable rental situations. With home ownership drifting out of reach, the wealth gap is widening and housing instability is becoming more common.

Experts are warning that unless bold reforms are introduced, not just in supply but in how we support renters and first time buyers, the inequality could become even more entrenched.

A watershed moment

Reaching the $1 million average is a wake up call. It signals a housing system that’s struggling to meet the needs of everyday Australians. The issue has moved up the political agenda and rightly so. Housing is now front and centre alongside healthcare and education in conversations about the country’s future.

However, Australians are looking for more than just government pledges. For many, the dream of owning a home feels more like a fading hope and a real solution can’t come soon enough. Look out for more property news on the Groundsure blog.