Australia’s national home values have surged 39.1% over the past five years, meaning the median dwelling value has increased by about $230,000, according to new CoreLogic data.
House prices jumped 39.1% in the five years to March 2025, according to CoreLogic’s April Housing Chart Pack. Meanwhile, the price of an average home has grown from 4.6 times the median income in 2001, to 6.5 in 2020, before hitting a record high of 8.0 at the end of last year.
Although the increase seen over the past five years is relatively mild in percentage terms compared with the historic peaks recorded in the early 2000s and late 1980s, the rise is far higher in dollar terms, according to Kaytlin Ezzy, a CoreLogic economist.
“While around half the increases seen during the previous peaks, when adjusted to the current median value, the rise seen over the past five years is equivalent to a roughly $230,000 increase,” she said.
“By comparison, the dollar rise seen over the five years to December 2003 was roughly $90,000 less, at $140,000, while the March 1989 increase was equivalent to around a $60,000 increase in the median.”
CoreLogic’s research director, Tim Lawless, said housing affordability had continued to hit new peaks.
“Other measures of housing affordability are also at a record high, including serviceability metrics, the number of years it takes to save a 20% deposit, and how much income is required to pay rent,” he said.
“In simple terms, housing values have risen a lot faster than incomes.
“The factors behind the rapid growth in values come back to underlying demand/supply imbalances as well as a long-term trend towards lower interest rates and household debt accrual.”
Sydney is the most unaffordable capital city housing market, with a ratio of housing values to incomes hitting 9.8, followed by Adelaide, with a ratio of 9.
Regional New South Wales is the third most unaffordable market with a ratio of 8.9, followed by Brisbane at 8.2.
At the other end of the scale is Darwin, with a dwelling value to income ratio of just 3.9 – a reflection of relatively low values and high incomes.
Ezzy said the 39.1% growth in values seen over the past five years reflected strong underlying housing demand, tight supply and a relatively resilient economy.
“Outside of a few short months of declines, values have seen strong upward pressure over the past five years, driven by low stock levels and increased demand,” Ezzy said. “But this growth cycle remains moderate compared to earlier periods, when financial deregulation, strong economic growth and favourable demographic shifts helped fuel remarkable value growth.”
