Owning a home in Australia is becoming an increasingly distant dream for many, as affordable housing options continue to decline across the country, according to recent data. Currently, there are only 422 Australian suburbs where buyers can find a median-priced home for under $500,000. This marks a significant drop compared to 501 suburbs just four months ago, and a steep decline from 1,753 suburbs in 2020.
Given that Australia has a total of 6,689 residential suburbs, these figures mean that less than 6.3% of housing markets now offer homes at what could be considered affordable prices.
According to the latest March Housing Market Trends Report, the median house price has risen to $996,000, while the median price for apartments stands at about $730,000. This sharp shift is reshaping what was once considered affordable housing. Eleanor Creagh, Senior Economist at REA Group, noted that the idea of affordable homeownership—especially in urban areas—is gradually fading.
She explained that median house prices across all capital cities now exceed $500,000, making it extremely difficult to purchase a standalone home at that price point in major urban centers. In more expensive cities like Sydney and Brisbane, some outer suburbs still offer properties within this price range, but options remain very limited and are typically located in less central areas.
She added that homes still selling at this price have become increasingly rare, particularly in established suburbs that are well-connected to employment hubs, public transport, and essential infrastructure.
