Treasury Analyses On Housing Supply

Written by Claude Haiku 4.5 from the extracted text on 10 Jul 2026. It can miss or misread redacted and scanned pages. Check the source before relying on it.

Treasury analysis from February 2025 projects housing price growth will soften through 2025-26 as cash rate changes, declining net overseas migration, and affordability constraints moderate demand. Nominal capital city housing prices were forecast to increase 4.6 per cent in 2024 and 6.3 per cent in 2025, while real prices were expected to rise 1.1 per cent and 3.7 per cent respectively—significantly below post-COVID growth rates. The analysis notes dwelling investment will remain subdued in 2024-25 due to weak building approvals but expects recovery in 2025-26 as population growth, moderating construction costs, and declining interest rates support investor activity and new supply. Treasury anticipated rental pressures would gradually ease as new housing comes online and households consolidate demand.