ÌÇÐÄÆƽâ°æ

The house price-to-income ratio in Australia was as of the fourth quarter of 2025. This ratio, calculated by dividing nominal house prices by nominal disposable income per head, decreased from the previous quarter. The price-to-income ratio can be used to measure housing affordability in a specific area.

Australia's property bubble

There has been considerable debate over the past decade about whether Australia is in a property bubble or not. A property bubble refers to a sharp increase in the price of property that is disproportional to income and rental prices, followed by a decline. In Australia, rising house prices have undoubtedly been an issue for many potential homeowners, pricing them out of the market. Along with the average house price, high mortgage interest rates have exacerbated the issue. 

Is the homeownership dream out of reach?

Housing affordability has varied across the different states and territories in Australia. In 2025, the median value of residential houses was the highest in Sydney compared to other major Australian cities, with Brisbane becoming an increasingly expensive city. Nonetheless, expected interest rate cuts in 2025, alongside the expansion of initiatives to improve Australia's dwelling stock, social housing supply, and first-time buyer accessibility to properties, may start to improve the situation. These encompass initiatives such as the Australian government's Help to Buy scheme and the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF) programs.