Australia doesn't need a bigger housing bubble

According to Cotality (formerly CoreLogic), the average home in Australia is now valued at around $1,020,000. This makes Australian housing among the most expensive in the world.

Australian housing was valued at 4.14 times the size of the Australian economy in Q1 2025, nearly double its value in the 1990s. By way of comparison, the US housing stock is valued at only 1.6 times the US economy.

Australia’s housing stock was valued at nearly $400,000 per person in Q1 2025, and in real terms, it has more than tripled in value over the past 30 years.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Australia doesn’t need a bigger housing bubble