Housing Market Trends
The Australian housing market in early 2026 is defined by continued price growth, driven by a severe, chronic undersupply of homes, with national prices still rising despite high interest rates and inflation. While national growth is slowing from 2025 peaks, regional Queensland and Brisbane remain strong, with Brisbane home values increasing by 13.7% annually, making it one of the priciest capitals.
Key 2026 Housing Market Trends:
- Strong Growth in QLD: Regional QLD (e.g., Granite Belt, +20.4%) and Brisbane are experiencing high demand, with Brisbane’s market having seen 87.2% growth over 5 years.
- Persistent Undersupply: Chronic low supply, driven by limited new construction and high demand, continues to underpin high prices.
- Regional Strength: Regional QLD performed second-best in Australia, with 13% annual growth in late 2025/early 2026.
- High Costs & Rents: Rental vacancy rates remain critically low, driving up rents, while high-income earners and investors are driving up competition.
- 2026 Outlook: While the rate of price growth is expected to moderate compared to 2025, the market is expected to remain firm due to supply constraints, despite the risk of further rate hikes.
Market Dynamics:
- Capital City Focus: Brisbane is outperforming, with house prices having reached a new peak, while other cities like Melbourne are seeing high demand in specific segments, though still below 2022 peaks.
- Unit Sector Growth: The unit sector is experiencing high demand and rapid price growth in certain areas.
- Investor/Buyer Behaviour: The market is competitive, particularly in desirable areas, with younger high-earners impacting prices.