Home prices in Australia are facing sharp increases after a significant slowdown in residential construction compared with official targets. With a projected shortfall of 462,000 homes by mid-2029, the country appears set to once again confront a severe housing affordability crisis.
The government’s plan to build 1.2 million homes by 2029 has suffered notable delays, with approvals for only 193,000 homes recorded in a single year, according to data from the Australian Bureau of Statistics.
The new report forecasts price increases of up to 30% in several major cities such as Brisbane, Adelaide, Perth, and Darwin between 2026 and 2030. Sydney and Melbourne are also expected to see significant rises, with typical home prices potentially reaching AUD 2.22 million in Sydney by 2031 and AUD 1.4 million in Melbourne.
Rich Harvey of Propertybuyer pointed to a widening gap between households able to own property assets and those who cannot. While government programs such as home-buying initiatives may help, reliance on family support remains a decisive factor for many buyers.
As solutions to the crisis, experts have suggested moving to lower-density areas, turning to rental investment, or considering multigenerational living arrangements. However, data shows that fewer than 15% of populated areas are currently on track to meet the targets of the national housing plan.
