Australia's housing market continues to evolve, driven by trends in property prices, loan types, interest rates, and homeownership challenges. In this article, we’ll explore key home loan and property statistics for 2025, starting with the most interesting statistics.
Top Statistics for 2025
- Total value of residential dwellings in Australia estimated at $11.03 trillion at the end of the December 2024, an increase of $26.4 billion from the last quarter [8].
- Total value of new home loans issued in the Dec 2024 quarter was $88.61 billion [12].
- Average home loan deposit for new first home buyers is around $159,000 [13].
- In 2024, there were 116,627 new first-home buyer loans written [4].
- In Dec 2024 quarter, over 159,000 Australians refinanced their home loans [12].
- In June 2024, 98.2% of new home loans were variable rates, with only 1.8% being fixed rate [13].
Property Market Growth
The Australian property market has seen significant growth in 2024, although it varies across different cities. Nationally, home prices rose by 4.7% from January to December 2024, although there was a slight 0.2% decline for the month of December [7].
In Sydney, the median dwelling value increased by 3.4% over the past year, reaching $1,106,000 in December 2024 [7]. Brisbane and Perth excelled, with annual growth of 11.4% and 17.6% respectively [7].
In contrast, Melbourne has struggled, with property prices declining by 2.5% over the last 12 months. Melbourne saw a 0.5% drop in property prices over the month of December 2024, and the rest of Victoria also saw a drop of 2.1% over the last year [7].
In regional markets, Townsville recorded the second-fastest growth in residential housing values [14], highlighting the increasing strength of regional property markets outside of the capital cities.
Home Loan Interest Rates
The home loan market in Australia continues to be influenced by fluctuating interest rates. As of September 2024, the average interest rate for fixed home loans (1-3 years) for owner-occupiers stood at 6.01% per annum [2]. In comparison, the average variable home loan rate is slightly higher, at 6.05% per annum [3]. These rates provide homeowners with different options depending on their preferences for fixed or variable repayments.
An interesting shift has been noted in the preferences of borrowers. By June 2024, 98.2% of new home loans were taken on a variable rate, with only 1.8% opting for fixed-rate loans. This trend suggests that many Australians are favouring flexibility, despite the uncertainty of rate increases in the future.
Additionally, 19.8% of new home loans were interest-only loans [13], allowing borrowers to minimise repayments in the short term, although this often results in higher costs over the life of the loan.
Loan Amounts and Deposits
The size of home loans continues to increase in line with rising property prices. As of Dec 2024, the average home loan amount for owner-occupiers reached a record high of $666,000 [12]. This surge in loan size highlights the growing challenges Australians face in securing home financing.
For investors, the average home loan size was $674,000 in Dec 2024, marking a 7.8% increase over the year [12]. This robust investor activity is contributing to the ongoing demand for property, particularly in major cities.
First home buyers, meanwhile, face significant hurdles. The average deposit for first home buyers in Australia is now around $159,000 [13], a sharp increase from previous years. Rising property values and living costs mean that the time required to save for a deposit has also lengthened [13], making homeownership more difficult to achieve for many Australians.
Home Ownership and Mortgage Stress
Australia’s homeownership rate, as of 2019–20, remains steady, with 66% of households owning their own home (with or without a mortgage) and 31% renting [9]. However, the burden of rising mortgage repayments is pushing more borrowers into financial stress. By July 2023, 1.5 million Australian borrowers, or 29%, were considered at risk of mortgage stress [10] —an alarming figure that surpasses the levels seen during the 2008 global financial crisis.
Despite this, mortgage arrears rates remain relatively low, indicating that most borrowers are managing to meet their repayment obligations despite the economic challenges posed by rising interest rates.
Housing Affordability and Costs
Housing affordability remains a pressing issue, especially for first-time buyers. The housing affordability index, which measures the ability of households to meet mortgage repayments, has shown slight improvements in recent years. However, affordability challenges persist, particularly in capital cities where property prices continue to rise.
In 2019–20, households with a mortgage spent an average of 16% of their income on housing costs, while renters spent 20% [9]. This demonstrates that even with ownership, the financial burden of housing remains significant for many Australians.
Property Investment and Refinancing Trends
Investment in the property market remains strong, with construction loans accounting for 11% of the total value of owner-occupier home loans in Dec 2024 [16]. This reflects ongoing demand for new housing developments across the country.
In terms of refinancing, over 28,000 Australian homeowners refinanced their home loans in June 2024 [13]. This surge in refinancing suggests that many borrowers are shopping around for better deals, taking advantage of competitive interest rates in a fluctuating lending market.
Historical Property Price Growth
Over the past three decades, national dwelling values in Australia have risen by an impressive 382%, with an average annual compounding growth rate of 5.4% [11]. This long-term growth highlights the resilience of the Australian property market, even during periods of economic downturn.
With more than 1.8 million new households expected to form across Australia by 2033 [15], the demand for housing shows no signs of slowing, further driving property values upwards.
Conclusion
These statistics provide a snapshot of Australia’s home loan and property market in 2025, offering insights into rising property prices, increasing loan sizes, and the financial pressures facing borrowers. As the market continues to evolve, homeowners, investors, and policymakers will need to navigate these trends to ensure a stable and sustainable housing market for the future.
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