The average price of an Australian home has reached an eye-watering $1 million, the Australian Bureau of Statistics says.

The ABS said the record Australian dwelling price came in the March quarter of 2025.

“The national mean price of residential dwellings passed $1 million for the first time in the March quarter 2025, rising 0.7 per cent to $1,002,500,” Dr Misha Tan, ABS head of finance statistics said.

“Western Australia, South Australia and Queensland were the main drivers of the rise , with Queensland reaching the second highest mean price in Australia, behind NSW.”

Michael Fotheringham, head of the Australian Housing and Urban Research Institute, said breaching the $1m benchmark was no surprise.

He said it was a daunting and compelling statistic brought about by a years-long national trend of home prices outpacing wages and leaving the housing system “very strained”.

“This isn’t just an affordability problem for lower-ncome households – this is very much a problem for medium-income households as well,” Fotheringham told the BBC.

“Globally we’re seeing the term housing crisis being used in many developed countries [but] our housing prices have risen sharply so it’s one of the less affordable countries overall.”

The BBC also reports that the average price of an Australian home is about double that of those in Britain (A$560,000; £270,000).

Mean dwelling price, states and territories. Source: Australian Bureau of Statistics

State of the states

NSW dwelling prices, which include houses and units, remained in front with an average price of $1.245 million.

It is the only state with an above-$1 million average price tag, despite the national mean now hitting more than $1 million.

Next in line is Queensland where the average home will set you back $944,700, according to the ABS.

Prices have dropped in the ACT in the past year; in the March quarter 2024 it was $951,800 but by this year it had dropped to $944,700.

Western Australia, where there has been strong growth, jumped nearly $100,000 in the same time. It has a mean dwelling price of $869,200.

Prices have also dropped in Victoria in the past year. It went from a mean dwelling price of $911,800 in the 2024 March quarter to $899,700 in the same quarter of this year.

The rise of the national home price came in the same period when the Reserve Bank of Australia made its first cut to the official cash rate in February.

It cut rates again in May, taking the cash rate to below 4 per cent for the first time in two years.

Total value of dwelling stock, Australia. Source: Australian Bureau of Statistics

And while there was strong growth in prices in the three months to March, it was down year on year.

Despite the quarterly rise in national dwelling value, annual growth in the March quarter slowed to 5.9 per cent. This was down from 9.5 per cent in March quarter 2024, Tan said.

There was quarterly growth across all states and territories, which was most evident in Queensland (up 1.9 per cent) and South Australia (up 1.6 per cent).

The total value of all Australian homes also rose in the March quarter according to the ABS.

It reported that the total value of Australia’s residential dwellings rose by $130.7 billion (1.2 per cent) to $11.4 trillion in the March quarter.

This article first appeared on View.com.au. Read the original here