Australia’s Housing Market Forecast Financial Year 2026

Australia’s Housing Market Forecast FY26

Australian home prices are expected to continue rising through FY26, supported by lower borrowing costs, government support for first-home buyers and rising household incomes. A national housing shortfall remains a key driver, with demand outpacing supply – although this pressure is expected to ease as migration slows and construction costs stabilise.

Unlike previous interest rate-cutting cycles, the upswing this time is likely to be more modest, reflecting expectations of smaller and more measured rate reductions.

Key findings include:

• Sydney and Melbourne are forecast to lead price growth, as they typically respond faster to interest rate changes.
• Price growth is expected to slow in Adelaide and Perth as affordability constraints mount.
• Record-high home prices are expected in Sydney, Brisbane and Adelaide by the end of FY26.

Read the full report for detailed capital city forecasts and the factors shaping Australia’s housing outlook.

Australia’s Housing Market Forecast Report

Detailed capital city forecasts and the factors shaping Australia’s housing outlook in FY26.

Download report