First Home Buyer :: News
SHARE

Share this news item!

Projected Housing Supply Shortfall and Its Impact on Property Prices

Understanding the Potential Six-Figure Price Increases in Major Australian Cities

Projected Housing Supply Shortfall and Its Impact on Property Prices?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Australia's housing market is bracing for a substantial supply shortfall, with projections indicating a deficit of approximately 462,000 homes against the National Housing Accord's target of 1.2 million new homes by mid-2029.
This shortfall is expected to drive significant property price increases across the nation.

Projected Price Increases

Analyses suggest that cities like Brisbane, Adelaide, Perth, and Darwin could experience dwelling price surges of around 30% over the next five years. For example, Brisbane's median property value is anticipated to rise from $1.013 million to $1.317 million by the end of 2031. Similarly, Adelaide's median value could increase by approximately $272,000, reaching $1.18 million within the same period.

Factors Contributing to the Shortfall

The housing supply deficit is attributed to several factors, including slower-than-expected building approvals and completions. In the most recent 12-month period, only 193,000 approvals were recorded, significantly below the required pace to meet national targets. This lag in construction exacerbates the existing demand-supply imbalance, leading to upward pressure on property prices.

Implications for First-Home Buyers

For first-home buyers, this projected price surge presents additional challenges in entering the property market. The anticipated increases may necessitate larger deposits and higher loan amounts, potentially impacting affordability. Prospective buyers should consider these forecasts in their financial planning and explore available government incentives and support schemes to mitigate the impact of rising prices.

Staying informed about market trends and seeking professional financial advice can assist first-home buyers in navigating the evolving landscape of the Australian property market.

Published:Monday, 30th Mar 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Finance News

Why Rate Uncertainty Still Matters Before Your First Home Loan
Why Rate Uncertainty Still Matters Before Your First Home Loan
16 Sep 2026: Paige Estritori
Interest rate uncertainty is again shaping the home loan conversation for Australian first-home buyers, with recent finance and property market reporting pointing to a cautious mood among borrowers, lenders and sellers. Even where headline price growth has moderated in some areas, the cost of borrowing remains one of the biggest practical hurdles for buyers trying to move from saving a deposit to securing approval. - read more
What Renewed Price Growth Means Before You Buy
What Renewed Price Growth Means Before You Buy
02 Sep 2026: Paige Estritori
Australia’s housing market is again showing signs of upward price pressure, with recent property reporting pointing to renewed gains across several capital cities and regional markets. For first-home buyers, the message is not simply that homes are becoming harder to reach. It is that every moving part of the purchase needs to be checked before making an offer. - read more
Could HELP Debt Relief Improve Your First-Home Loan Chances?
Could HELP Debt Relief Improve Your First-Home Loan Chances?
26 Aug 2026: Paige Estritori
Australia’s student debt changes are becoming an important finance story for aspiring first-home buyers, especially graduates who have been carefully saving while also carrying a HELP balance. A lower study debt can make the path to a first home buyer home loan feel more achievable, but it is not a simple switch from “not ready” to “approved”. - read more
Why Mortgage Stress Headlines Matter Before You Apply
Why Mortgage Stress Headlines Matter Before You Apply
19 Aug 2026: Paige Estritori
Recent property and finance reporting has again highlighted pressure on Australian mortgage holders, with higher repayments, insurance costs, council rates and everyday bills leaving some households with less room to move. For first-home buyers, the main lesson is not that buying is out of reach. It is that preparation matters more when lenders and borrowers are both watching affordability closely. - read more


Home Loan Articles

Why Your Credit Score Matters When Buying Your First Home
Why Your Credit Score Matters When Buying Your First Home
Buying your first home is an exciting and significant milestone in life, especially for young Australians. The journey from dreaming about home ownership to holding those keys can feel both thrilling and daunting. With property prices fluctuating and the market offering numerous opportunities, understanding the dynamics of purchasing a home in today's Australian housing market is crucial. - read more
Budgeting Blunders to Avoid When Buying Your First Home
Budgeting Blunders to Avoid When Buying Your First Home
Buying your first home is an exciting milestone, but it can also be a daunting experience, especially for young Australians. The journey is filled with challenges ranging from navigating the real estate market to securing a mortgage that won't stretch your finances too thin. - read more
How lenders assess borrowing capacity for first home buyers
How lenders assess borrowing capacity for first home buyers
First home buyer borrowing capacity is based on more than income. Lenders usually look at income, expenses, debts, deposit size, credit history and whether repayments remain affordable if rates or circumstances change. - read more
Understanding How Interest Rates Affect Your Home Loan Payment
Understanding How Interest Rates Affect Your Home Loan Payment
Interest rates might seem like just a number, but they play a crucial role in determining how much you ultimately pay for your home. Simply put, the interest rate on your home loan is the cost you incur for borrowing money from a lender. - read more

Knowledgebase
Lien:
A legal claim against a property that must be paid off when the property is sold.