Australia House Prices Surge in November 2025 as Affordability Hits Record Lows — Cotality Report

Australia’s House Prices Surge in November 2025 Amid Record Unaffordability, Cotality Reports

Australia’s housing market witnessed another sharp rise in November 2025, intensifying the country’s ongoing affordability crisis. According to Cotality’s latest national report, home prices climbed at the fastest rate in more than two years, driven by limited supply, strong demand, and increased buyer activity.

The national median home price reached a record A$888,941, reflecting a monthly increase of around 1%, the strongest growth since June 2023. Nearly all capital cities experienced price boosts, with Perth leading at 1.9%, followed by Brisbane and Darwin. The rising prices highlight both demand strength and affordability pressures for first-time buyers.

Cotality’s data also shows that the availability of listed homes has dropped to one of the lowest points in five years, remaining 18% below the historical average. Meanwhile, sales activity continues to outperform, sitting 3.1% above the five-year mean — a clear sign that demand still outweighs supply despite high prices.

Economists note several factors behind the surge:

Earlier interest rate cuts by the Reserve Bank of Australia,

Government incentives supporting first-home buyers,

Investor activity and home upgraders,

Increased migration boosting buyer and rental demand.

However, the rising prices have worsened the housing affordability crisis. According to PropTrack’s 2025 Housing Affordability Report, an average-income household can afford only 15% of homes sold nationwide — showing almost no improvement despite rate cuts. For low-income families, affordability is even more dire, with only 3% of available homes within reach.

Another concerning trend is the widening house–unit price gap. Cotality’s November analysis showed that detached houses now cost, on average, A$363,000 more than units across major capitals, the largest recorded gap in years. This reflects a strong buyer preference for standalone homes, further driving up prices in that segment.

Experts warn that without urgent policy action — such as boosting housing construction, easing planning restrictions, and expanding financial support for first-home buyers — the crisis may deepen in 2026. The current trajectory risks pushing many aspiring homeowners permanently out of the market.

The Australian government is under increasing pressure to accelerate supply-side reforms and ensure that the dream of homeownership does not remain exclusive to high-income earners. Analysts believe that unless long-term structural solutions are implemented, Australia will continue to face a widening divide between those who own property and those who may never enter the market.