Housing shortages to drive prices higher

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KPMG’s January 2026 outlook paints a picture of broad‑based, shortage‑driven price growth, with affordable suburbs and unit markets outperforming, and Melbourne, Brisbane, and Perth emerging as standout markets.

Despite affordability challenges, Australia’s housing market is expected to remain tight, competitive, and upward‑trending through 2026.

Last year recorded stronger‑than‑expected growth, with national house prices rising by 8.6% in 2025 and national unit prices rising by 7.3%.

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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.