Australia's Homes Now Average 1 Million Dollars. Why That Matters and What Needs to Change
Well, it’s finally happened! The average price of an Australian home has now passed the one million dollar mark.
According to the latest data from the Australian Bureau of Statistics, the national average reached $1,002,500 in the March quarter. In New South Wales, it is even higher at 1.2 million dollars.
This is not just a big city problem. It is a national one.
Now these figures aren't just for houses, it includes all types of dwellings including apartments, terrace homes and freestanding houses across the country’s 11.3 million residential properties. And it reflects a housing market that continues to move further out of reach for many Australians.
Not Just a Low Income Issue
What was once considered a challenge for low income households is now affecting a far broader group. Middle income earners such as teachers, nurses, essential workers and young professionals are increasingly finding it difficult to buy or rent a home near where they work or grew up.
Michael Fotheringham from the Australian Housing and Urban Research Institute summed it up well. This is not just a story about affordability. It is a story about access, equity and supply. The system is strained and the pressure is not letting up.
What Is Driving the Crisis
There is no single cause but several factors are making things worse
A long standing undersupply of housing
Strong population growth
Limited public and social housing investment
Tax and policy settings that favour property investors
A slow and expensive construction process
Even when new housing projects are approved many take close to a year or more to complete. With labour shortages, rising material costs and weather disruptions, the timeline from concept to completion is too long for the level of demand Australia is now facing.
The Impact Is Widespread
High prices are not just locking people out of ownership. They are also fuelling a rental squeeze. Vacancy rates are at historic lows in many cities and regions and rental prices continue to climb. For people on moderate incomes securing stable housing is becoming harder every year.
And it is not only an affordability issue. It is also about quality. Many of the homes being delivered are not well designed for modern living or climate conditions. Energy performance is often poor and many new builds rely on outdated methods that are slow, inefficient and carbon intensive.
What Needs to Change
Australia needs more housing but more importantly it needs better ways to deliver it.
There is growing recognition that new approaches to construction will be key. Building systems that reduce time on site, improve energy efficiency and lower material waste could make a meaningful difference especially if they can be scaled.
Modular and panelised building systems allow us to think beyond the usual constraints, says Sean Coddington, a master builder and founder of Rapid Build. We are not just looking at faster builds. We are looking at smarter ways to design, engineer and deliver housing that meets real demand.
Coddington has spent decades working in residential construction and has seen first hand how delays, inefficiencies and material waste compound on traditional job sites.
Speed matters but it is nothing without quality he says. The goal is to deliver homes that are strong, efficient and comfortable while reducing the time and cost it takes to get them there. That is where integrated systems really start to shift the conversation.
A Turning Point
The one million dollar milestone is more than just a statistic. It marks a tipping point in the national conversation around housing. It makes clear that the current model is not working for the majority of Australians.
Solutions will need to come from many directions including policy, planning and investment. But the way we build must also evolve.
New construction systems that are faster, more sustainable and more affordable to deliver are already emerging. With the right support and attention they could play a bigger role in easing the pressure and helping to restore balance in the market.
Because if housing is to be truly accessible it cannot just be about the number of homes. It must also be about the way they are built and how quickly, efficiently and thoughtfully they can be delivered.