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Fears are growing that Australia’s housing affordability crisis could be worsening, as new ABS data shows average home prices have surpassed $1 million.
The average price of an Australian home has passed the $1 million mark for the first time, as the country continues to struggle with housing affordability.
New data from the Australian Bureau of Statistics (ABS) showed that the national mean price of residential dwellings rose 0.7 per cent to $1,002,500 in the March quarter 2025.
The total value of residential dwellings rose by $130.7 billion (1.2 per cent) to $11.4 trillion in the quarter.
Quarterly home value growth was seen across all states and territories and most evident in Queensland, where it rose 1.9 per cent, and South Australia, where it grew 1.6 per cent.
The number of residential dwellings rose by 0.5 per cent to 11.3 million in the quarter.
The average price of residential dwellings in NSW remained the highest in the country at $1.25 million, followed by Queensland at $944,700 and the ACT at $941,300.
The first quarter saw the average home price in Queensland overtake the ACT as the second-highest value in the nation. The Northern Territory maintains the lowest mean price at $517,700.
Reflecting on the data, Mish Tan, ABS head of finance statistics, said: “The national mean price of residential dwellings passed $1 million for the first time in the March quarter 2025, rising 0.7 per cent to $1,002,500.
“Western Australia, South Australia and Queensland were the main drivers of the rise, with Queensland reaching the second highest mean price in Australia, behind New South Wales.
“Despite the quarterly rise in national dwelling value, annual growth in the March quarter slowed to 5.9 per cent. This was down from 9.5 per cent in March quarter 2024.”
Housing affordability and accessibility continue to be a major issue, with research released last month showing the supply of new homes was around its lowest point in a decade in 2024.
Commenting on data published last month that showed slugging new home supply, National Housing Supply and Affordability Council (NHSAC) chair Susan Lloyd-Hurwitz said Australia remained “very much in a housing crisis that has been decades in the making”.
She said: “The Australian housing system continues to experience immense pressure.
“For many Australians, right across the country, securing a home that is affordable, fit for purpose and secure remains challenging, if not impossible. This is a source of significant stress for individuals and households.”
[Related: Housing crisis deepens amid affordability woes and supply shortfall]
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