How does housing affordability in Australia compare internationally?
Australia's price-to-income index reached 150.3 in the December quarter of 2025 when measured against its own long-run average of 100. That was the highest reading among the 21 OECD countries with data for the quarter, ahead of Canada at 147.3.
Against a fixed 2015 base, Australia's index was 121.8—an increase of 79.4% since early 2000, compared with 18.8% for the OECD aggregate. A separate cost-burden measure found 6.5% of Australians lived above the 40% threshold in 2021, below the OECD average of 9.2%.
Against long-run average
150.3
Australia, 2025-Q4
Change since 2000
+79.4%
Price-to-income index
Above 40% threshold
6.5%
Australia, 2021
How Australia's home ownership rate compares to other countries
Ownership rates internationally, and how they have shifted since 1990.
Read full article →How Australia's housing performance has compared to other countries over time
Three decades of price growth and building rates measured against peer countries.
Read full article →SECTION 01 · MEASUREMENT
How is housing affordability measured across countries?
International measures include price-to-income ratios, housing expenditure as a share of income, residual income, housing quality and household perceptions. Each answers a different question.
Families of housing affordability measures
| Measure family | Example | Principal limitation |
|---|---|---|
| Price-to-income ratios | House-price-to-income | Aggregate only; excludes distribution, quality and borrowing costs |
| Expenditure-to-income | Cost burden above 40% | Fixed thresholds ignore household circumstances |
| Residual income | Shelter poverty | May confuse broader living-cost pressure with housing |
| Housing quality | Rooms per person | Quality differs across countries and cultures |
| Subjective indicators | Affordability satisfaction | Expectations differ across people and places |
What do these indices measure?
SECTION 02 · PRICE-TO-INCOME INDICES
Australia's price-to-income index compared with other economies
At the end of 2025, Australia's fixed-base index was 121.8. Canada recorded 128.0, the United States 126.9 and the OECD aggregate 114.8. The common comparison window runs from 2000-Q1 to 2025-Q4.
Price-to-income index in Australia and comparable economies, 2000 to 2025
Nominal house prices divided by nominal disposable income per head, 2015 = 100. Selected quarters shown.
- Australia
- Canada
- New Zealand
- United States
- United Kingdom
- Germany
- France
- OECD
Source: OECD Analytical house prices indicators, HPI_YDH and HPI_YDH_AVG, accessed 3 August 2026.
The fixed 2015 base shows change around a common reference year. A second OECD series places each country's own long-run average at 100, showing distance from national history rather than absolute housing cost.
Price-to-income index against each economy's own long-run average
December quarter 2025. Each economy's own long-run average equals 100.
Source: OECD Analytical house prices indicators, HPI_YDH and HPI_YDH_AVG, accessed 3 August 2026.
Price-to-income index, selected quarters
| Economy | 2000-Q1 | 2015-Q1 | 2019-Q4 | 2025-Q4 | Change | vs long-run avg. |
|---|---|---|---|---|---|---|
| Australia | 67.9 | 96.4 | 103.6 | 121.8 | +79.4% | 150.3 |
| Canada | 65.6 | 98.7 | 120.4 | 128.0 | +95.2% | 147.3 |
| New Zealand | 62.0 | 96.9 | 108.4 | 101.3 | +63.5% | 125.2 |
| United Kingdom | 69.6 | 100.4 | 104.6 | 104.0 | +49.5% | 116.2 |
| United States | 105.8 | 98.9 | 108.5 | 126.9 | +19.9% | 112.9 |
| France | 67.3 | 100.6 | 102.5 | 93.8 | +39.5% | 106.9 |
| Germany | 116.4 | 99.9 | 116.7 | 107.5 | −7.6% | 88.3 |
| OECD aggregate | 96.6 | 99.4 | 106.8 | 114.8 | +18.8% | 108.4 |
Read the 79.4% rise with care
SECTION 03 · AUSTRALIAN CITIES
How house prices and housing costs compare across Australian capital cities
Hobart's house price index rose 99.7% from early 2015 to late 2021, while Darwin's fell 10.9%. Sydney rose 58.9%, ranking fourth among the eight regions.
House price index change across Australian capital cities
March quarter 2015 to December quarter 2021; nominal indices, all dwelling types.
Source: OECD National and regional house price indices, Australian CITY series, accessed 3 August 2026.
Housing costs accounted for a median 14.8% of gross household income across capital cities in 2019–20, ranging from 13.3% in Adelaide to 16.8% in Sydney.
Median housing costs as a share of income, 2019–20
| Capital city | All households | 95% margin | Mortgage owners | Private renters |
|---|---|---|---|---|
| Greater Sydney | 16.8 | ±1.0 | 18.9 | 24.4 |
| Greater Brisbane | 15.5 | ±1.1 | 15.8 | 22.5 |
| Greater Darwin | 15.4 | ±1.8 | 16.5 | 20.3 |
| Greater Perth | 13.8 | ±1.6 | 16.5 | 20.5 |
| Greater Melbourne | 13.6 | ±1.0 | 17.2 | 20.4 |
| Greater Hobart | 13.6 | ±2.1 | 15.8 | 24.7 |
| Australian Capital Territory | 13.6 | ±1.4 | 16.3 | 20.2 |
| Greater Adelaide | 13.3 | ±1.2 | 14.8 | 21.4 |
Data currency
SECTION 04 · RENTER BURDENS
How much income do renters spend on rent in Australia and other countries?
The median Australian renter spent 23.1% of disposable income on rent in 2021. New Zealand recorded 25.9%, Canada 24.5%, the United States 24.4% and the OECD aggregate 21.8%.
Renter burden and the 40% overburden rate
Latest available years from 2017 to 2024. The third series measures population, not renter income.
- Median renter
- Bottom-quintile renter
- Population over 40%
Source: OECD Affordable Housing Database HC1.2, released 3 October 2025.
Renter and owner housing-cost burdens
| Economy | Year | Median renter | Mortgage owner | Bottom-quintile renter | Population over 40% |
|---|---|---|---|---|---|
| New Zealand | 2017 | 25.9 | 15.7 | 43.9 | 14.0 |
| Canada | 2022 | 24.5 | 16.0 | 34.9 | 10.1 |
| United States | 2023 | 24.4 | 15.1 | 40.9 | 12.0 |
| Australia | 2021 | 23.1 | 18.2 | 33.2 | 6.5 |
| United Kingdom | 2022 | 23.0 | 17.0 | 33.4 | 8.8 |
| France | 2024 | 21.8 | 18.1 | 29.2 | 5.6 |
| Germany | 2024 | 18.4 | 13.6 | 27.8 | 4.8 |
| OECD aggregate | Mixed | 21.8 | 15.6 | 31.6 | 9.2 |
Australia's owner-with-mortgage burden was the highest in this group at 18.2%, but its data predates the interest-rate increases that began in May 2022. Reference years vary from 2017 to 2024.
Australia real rent index
91.9
2024; +5.4% since 2000
United States
111.0
2024; +19.2% since 2000
OECD aggregate
102.4
2024; +7.3% since 2000
SECTION 05 · CHANGE SINCE 2000
How price-to-income indices have changed since 2000
Canada recorded the largest increase at 95.2%, followed by Australia at 79.4% and New Zealand at 63.5%. Germany was the only economy in the group to fall over the full period.
Change in the price-to-income index, 2000 to 2025
Percentage change between 2000-Q1 and 2025-Q4.
Source: OECD Analytical house prices indicators, HPI_YDH and HPI_YDH_AVG, accessed 3 August 2026.
Different windows produce different rankings. Australia recorded the largest increase between late 2019 and late 2025 at 17.6%, while New Zealand, France, Germany and the United Kingdom declined.
SECTION 06 · COMPARISON LIMITS
Why international housing affordability comparisons have limitations
Underlying national price series differ. Australia values the total dwelling stock, the United States covers existing single-family sales, and Canada covers 11 cities. The other four country series cover sales of new and existing dwellings nationally.
Key differences in national house price coverage
| Country | Coverage | What is priced |
|---|---|---|
| Australia | Whole country | Total stock, all dwelling types |
| Canada | 11 main cities | Existing dwelling sales |
| United States | Whole country | Existing single-family sales |
| United Kingdom | Whole country | New and existing dwelling sales |
| France, Germany, New Zealand | Whole country | New and existing dwelling sales |
Price-to-income measures also exclude borrowing costs. The cash-rate comparison therefore provides context, not an affordability component or evidence of causation.
Australia's price-to-income index and cash rate at selected quarters
Index on the left axis; cash rate target on the right. Quarters are not evenly spaced.
- Price-to-income index
- Cash rate target
Source: OECD Analytical house prices indicators; RBA Cash Rate Target, Statistical Table F1.
One survey, two definitions