Housing Market Expected to Strengthen as Structural Shortage Persists

Property analysts predict continued resilience in Australia’s housing market due to an ongoing structural shortage of homes.

Forecasts suggest housing demand will remain strong throughout 2026, supported by population growth and limited new supply entering the market.

Economists describe the situation as a structural undersupply, meaning even when prices soften temporarily, demand quickly returns as buyers re-enter the market.

While affordability remains a challenge, the long-term outlook indicates sustained need for new housing construction across Australia.

Industry stakeholders increasingly agree that improving construction efficiency and accelerating project delivery will be critical to stabilising the market.