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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.

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Knowledgebase
Interest Rate:
A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a resul