FinancialMediaGuide notes that the Australian real estate market continues to experience significant changes, which greatly impact housing affordability and investment strategies. In recent years, the market has been subject to sharp fluctuations: after a surge in prices by 40% during the COVID-19 pandemic, a 9% decline followed, triggered by interest rate hikes aimed at fighting inflation. However, the reduced rates in 2025 have once again stimulated demand, leading to record-high housing prices. Analysts’ forecasts for 2026 indicate that prices will continue to rise, signaling a sustained market dynamic despite ongoing economic challenges.
According to FinancialMediaGuide’s forecasts, housing prices are expected to increase by 6.9% in 2026, significantly higher than previous estimates. In major cities like Sydney, Melbourne, and Brisbane, prices could rise by 5-7%. This confirms the continued supply shortage amid growing demand, which is putting pressure on purchasing power, particularly for first-time buyers. Additionally, while interest rates have been lowered to stimulate purchasing activity, the issue of housing affordability remains a major concern.
We at FinancialMediaGuide emphasize that the main problem persisting in the market is the shortage of affordable housing, especially in the entry-level segment. For buyers looking to purchase their first home, this remains a serious barrier. In addition, high mortgage rates and required down payments make housing not only difficult to acquire but also expensive.
The housing market is characterized by intense competition, which continues to support price growth, particularly in large metropolitan areas. While policies to stimulate construction are in place, supply shortages remain critical. Programs such as lower interest rates and subsidized mortgage loans may temporarily boost demand, but they do not address the core issue – the housing shortage. Moreover, according to FinancialMediaGuide, the ambitious program to build 1.2 million homes by 2030 is unlikely to fully meet the short-term supply gap.
Forecasts for 2026 show that housing prices will continue to rise, supported by high demand. However, it is important to note that such growth in the long term will continue to make housing more difficult to purchase for most Australians. Leading economists at FinancialMediaGuide argue that despite the expected price increase, the second half of the year may witness a slowdown in growth rates due to market overheating and excessive demand.
In the future, the Australian real estate market will be influenced by many factors, including migration flows and economic fluctuations. The market remains attractive to investors, but for buyers, especially first-timers, the situation remains challenging. The key factor for potential buyers and investors is to pay attention to long-term forecasts and potential changes in the country’s economic policy, as well as in the mortgage lending sector. To successfully purchase or invest, it is important to be prepared for high prices and unstable conditions.
In conclusion, based on current trends, Financial Media Guide predicts that the Australian real estate market will continue to demonstrate growth, although the pace of this growth may slow down. At the same time, the issue of housing affordability, particularly for new buyers, will remain pressing. For investors, it is crucial to closely monitor market trends and be prepared for changes related to the economic situation and shifts in the real estate sector.
The Australian housing market in 2026 will remain under pressure from a supply shortage, which will continue to push prices up. However, new measures aimed at stimulating construction will not fully solve the problem of affordable housing in the short term.
