Australia’s property prices are expected to continue rising through 2026, though growth is forecast to be more measured and uneven than in recent years, according to The Sydney Morning Herald. Economists and housing analysts cited in the report point to population growth, strong underlying demand and a persistent shortage of housing supply as the main forces supporting prices.
House prices are expected to rise in 2026.Credit:Peter Rae
The article notes that while affordability constraints and interest rate uncertainty are likely to limit how far prices can climb, these pressures are not expected to result in widespread price falls. Instead, performance is expected to vary between cities and housing segments, depending largely on local supply conditions.
Critically, The Sydney Morning Herald highlights that limited new housing completions remain a structural constraint, preventing any meaningful easing of price pressure even as demand softens. This reinforces that Australia’s housing challenge remains fundamentally supply-driven.
In this context, initiatives such as AUSMOD20K, which aims to deliver 20,000 affordable modular homes across Australia, align with the need identified in the report to expand housing supply more quickly and at scale. Programs focused on faster, repeatable delivery models are increasingly relevant as traditional construction continues to struggle to keep pace with underlying demand.
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