Why Australia’s Housing Downturn Won’t Fix the Affordability Crisis

What the latest official figures show

Australia was facing a housing affordability crisis, and its average dwelling price passed A$1 million for the first time — about US$652,000 or £483,000, according to BBC News reporting dated 12 June 2025.

The figure comes from Australian Bureau of Statistics data published that week. In the first quarter of 2025, the average Australian dwelling price reached A$1,002,500, up 0.7% from the previous quarter.

That average covers roughly 11.3 million dwellings across Australia, spanning property types from detached houses and terraces to apartments.

Where prices are highest

New South Wales, Australia’s most populous state, recorded the highest average dwelling price at A$1.2 million. Queensland came next at A$945,000.

Why the A$1 million milestone did not surprise researchers

Michael Fotheringham, head of the Australian Housing and Urban Research Institute, said he was not surprised by the average price passing A$1 million.

He added that many developed countries use the term “housing crisis,” but Australia’s price growth has been particularly sharp, making it one of the least affordable countries in the world for housing.

How Australia compares with the UK and Canada

According to Canadian Real Estate Association data, the average UK home price is about half Australia’s, at roughly £560,000, while Canada’s average is about A$763,000 (C$680,000).

Fotheringham said Canada faces housing challenges similar to Australia’s, while the UK is clearly different because it has more council and social housing.

He noted one thing the UK and Australia share: both have set ambitious home-building targets. Australia aims to build 1.2 million homes over five years, while the UK plans 1.5 million.

FAQ

Did Australia’s average home price really pass A$1 million?

Yes. Australia’s average dwelling price passed A$1 million for the first time, with the figure reaching A$1,002,500 in the first quarter of 2025, according to ABS data.

Which state had the highest average price?

New South Wales, Australia’s most populous state, had the highest average dwelling price at A$1.2 million, followed by Queensland at A$945,000.

How does Australia’s average price compare with the UK and Canada?

According to Canadian Real Estate Association data, the UK average of about £560,000 is roughly half Australia’s, while Canada’s average is about A$763,000, or C$680,000.