Australian home buyers are set to fork out an extra $78,320 on average next year, as the national median house price is forecast to smash through the $1 million mark to reach a new high of $1,057,320.
A new report from PropTrack reveals combined capital city home prices will surge by another 6-8 per cent in 2026, forcing prospective homeowners to dig even deeper into their pockets.
While this represents a slightly slower pace than 2025, it still means significant financial pressure for those trying to get a foot on the property ladder or upgrade.
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The relentless climb is being driven by a cocktail of factors, including anticipated borrowing capacity boosts from 2025’s cash rate cuts and ongoing income growth.
However, stretched affordability is expected to temper the pace, preventing a return to the explosive gains of past booms.
Source: PropTrack
“Australia’s housing market enters 2026 with prices still rising, but signs that momentum is moderating,” the outlook report states.
“The tight supply backdrop that has supported price growth this year remains, yet stretched affordability and an extended pause on interest rates are set to temper the pace of growth.”
Demand remains strong, fuelled by population inflows, investor activity, and government schemes like the 5 per cent Deposit Scheme and Help to Buy.
But with interest rates expected to hold steady, the sheer cost of repayments and deposit hurdles will increasingly constrain buyers.
Source: PropTrack
Compounding the issue is a persistent undersupply of new housing, with total listings volumes remaining historically low across much of the country.
This scarcity continues to place a firm floor under prices.
“These dynamics point to continued price growth in 2026, albeit at a slower pace than in 2025,” the outlook report states.
“The exceptional outperformance of Perth, Brisbane and Adelaide seen in recent years is likely to narrow, while Sydney and Melbourne should see more modest gains.”
How much more will you pay in 2026?
Sydney
Buyers will need to find an additional $85,750, pushing the median to $1,325,750.
Growth is expected between 5-7 per cent, with demand shifting to more affordable outer and middle-ring suburbs.
Brisbane
Prepare for a hefty $99,700 increase, taking the median to $1,096,700.
Prices are forecast to jump 7-10 per cent, driven by migration and tight supply.
Adelaide
Home buyers face an extra $80,820, with the median reaching $978,820.
Growth of 6-9 per cent is predicted, though affordability challenges will moderate the pace.
Melbourne
An additional $59,640 will be needed, pushing the median to $911,640.
Prices are expected to lift 5-7 per cent as the city continues its recovery, with more stock offering buyers greater choice.
Hobart
Buyers will need to find an extra $48,930, taking the median to $747,930.
Prices are forecast to rise 4-7 per cent, consolidating after previous booms.
Perth
Another $93,000 will be added to the average home, with the median hitting $1,023,000.
Perth is set for 7-10 per cent growth, continuing its strong run due to population inflows and tight rental markets.
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