Housing Shortages: A Recipe for Rising Prices
The housing market is a complex beast, and the latest insights from KPMG offer a fascinating glimpse into its future. According to their January 2026 outlook (https://kpmg.com/au/en/insights/economics-geopolitics/residential-property-market-outlook.html), we're in for a period of sustained price growth, but with a twist. While affordability remains a challenge, the focus is shifting towards a shortage-driven phenomenon.
Here's the breakdown:
- Shortage-Driven Growth: The report predicts a broad-based increase in property prices, fueled by a shortage of housing supply. This means that even in affordable suburbs and the unit market, prices are expected to rise.
- Standout Markets: Melbourne, Brisbane, and Perth are emerging as the stars of the show. These cities are likely to experience significant price growth, making them attractive investments.
- Competitive Market: Despite affordability challenges, the Australian housing market is expected to remain tight and competitive throughout 2026. This competitive environment will likely keep prices on an upward trajectory.
- Strong Growth in 2025: The past year didn't disappoint. National house prices soared by 8.6%, and unit prices rose by 7.3%, surpassing expectations.
So, what does this mean for you? Well, it's a reminder that the housing market is dynamic and ever-changing. While affordability might be a concern, understanding the shortage-driven dynamics could be key to making informed decisions. Are you ready to dive deeper into this fascinating market and explore the opportunities it presents?
