## Rising Australian Home Prices Despite Record Unaffordability
Australian housing prices continued to rise in November, according to data from property analytics firm Cotality. The report showed solid price growth across most capital cities, even as the overall affordability of housing reached historic lows.
### Key Market Trends
- National home values increased for the month, led by gains in Sydney, Brisbane, and Perth.
- Regional areas showed more moderate growth compared to metropolitan markets.
- The average dwelling price has now surpassed its previous peak, setting a new national record.
### Factors Driving Price Growth
Cotality analysts pointed to ongoing supply shortages and resilient demand, despite high borrowing costs and stagnant wage growth.
> “The imbalance between housing supply and demand remains the central driver of price increases,” the report noted.
Rising construction costs and slow planning approvals further restricted new housing supply, adding pressure to prices. Migration inflows also contributed to demand for homes in major cities.
### Impact on Affordability
The firm warned that affordability for first-home buyers has fallen to its lowest point in decades. Monthly mortgage repayments now absorb a larger share of household income than at any time since the early 1990s.
> “Many households are being priced out of the market entirely, particularly younger buyers,” said a Cotality researcher.
### Outlook
Analysts expect prices to moderate slightly in early 2026 but remain supported by strong population growth and limited housing availability. The government’s housing policy reforms may take years to ease the supply crisis.
***
*Author’s summary: Home prices across Australia rose again in November, with Cotality reporting record-low affordability driven by supply shortages and strong urban demand.*
more
Reuters on MSN — 2025-11-30