This has added approximately $227,000 to the median dwelling price.
CoreLogic’s latest analysis highlights how the market has shifted through different phases over the past five years.
Initially, national home values dipped 1.7% in the early months of the pandemic due to economic uncertainty and strict lockdowns. However, from mid-2020 to April 2022, values skyrocketed by 33.1%, fuelled by record-low interest rates, government stimulus, and shifts in migration patterns.
A short downturn followed as interest rates rose sharply, causing a 7.5% decline, but from early 2023, another growth phase pushed values up 14.5% before plateauing in recent months.
Houses outperform units and regional markets spike
House values have significantly outpaced unit values over the past five years, rising 44.5% compared to a 20.1% increase for apartments.
The demand for more space, particularly during lockdowns, drove this trend, with house prices soaring by 38.5% during the initial pandemic boom (July 2020 – April 2022). However, as affordability constraints intensified, units started gaining ground, narrowing the gap slightly in the most recent growth cycle.
Regional markets also experienced an extraordinary rise, with values increasing by 56.3% since March 2020—outpacing the 33.6% rise across capital cities. Lifestyle and commutable regions, such as Byron Bay (+74.7%), Ballina (+70.8%), and Gympie (+70.3%), saw some of the highest price increases as remote work opportunities encouraged city dwellers to relocate.
In more recent years, rural Queensland markets like Townsville, Rockhampton, and Gladstone, as well as Western Australia’s coastal cities, have led growth.
Perth, Adelaide and Brisbane lead growth
Among capital cities, Perth has recorded the highest value increase since the pandemic began, rising 75.9% (approximately $348,519 added to the median dwelling value). Adelaide followed closely, with prices up 73.1% (+$347,092), while Brisbane saw the largest dollar gain, with an additional $364,305 added to the median dwelling price (+68.7%).
At the other end of the spectrum, Melbourne recorded the weakest growth of all capital cities, with values rising just 8.4% since 2020. The city’s prolonged lockdowns, weaker investor demand, and shifting migration trends contributed to its underperformance, with many residents opting to move to regional Victoria or other states. Melbourne’s affordability has improved slightly due to its relatively weak price growth, but it remains a challenging market for first-home buyers.
Rentals soar
Australia’s rental market has also undergone a dramatic transformation, with CoreLogic’s national rental index climbing 37.6% since March 2020 – more than five times the growth rate seen in the previous five years.
House rents have risen by 38.7%, while unit rents are up 35.1%, with affordability pressures driving increased demand for apartments in major cities.
Perth has led rental price growth, with a staggering 63.9% rise since the onset of the pandemic, adding approximately $274 per week to the median rent. Adelaide (+46.2%) and Brisbane (+40.6%) also experienced sharp rental increases, driven by high migration and a lack of available rental properties.
In contrast, Hobart and Canberra saw more subdued rental growth, thanks to a healthier supply of housing and slowing demand.
The road ahead
While rising home values have benefited existing homeowners, affordability has reached crisis levels for many aspiring buyers and renters. Wages have increased at less than half the rate of housing prices since 2020, and CoreLogic’s affordability metrics are now at or near record highs.
Looking ahead, housing demand will continue to be influenced by population growth, supply constraints, and potential interest rate cuts. While markets have recently stabilised, affordability challenges and ongoing supply shortages suggest that further price pressures may persist, particularly in high-demand regions.
