Source
Sep 15, 2023
Australia’s housing values have now risen for six months straight, though growth remains modest. Tight supply and affordability pressures are shaping how and where this growth happens.
The Australian housing market has continued a streak of steady growth, with national home values up for the sixth consecutive month as of July 2025. July saw a monthly increase of around 0.6%, helped by low supply, buyer confidence, and expectations of further interest rate cuts. Despite these positive drivers, many buyers are still being held back by affordability constraints, rising mortgage rates earlier in the cycle, and stretched household budgets. The gap between house-price vs unit-price growth is widening, and rental vacancy rates remain tight at historic lows, putting upward pressure on rents. Capital cities are diverging: places like Darwin and Perth are seeing stronger value gains compared to Melbourne and Hobart which are lagging.