In January, we reported on the “Housing Boom” phenomenon that is shaping up to be Australia’s hottest housing market of the 21st century.
We’re about to dive into the story of how we got here and why it’s going to take so long for it to end.
In this article, we’ll explore what we can expect from the next four years, and what the next housing boom will look like.
What’s driving our house price growth?
House prices in Australia have been surging for years.
Over the past year, the annual average price of a home in the state of Victoria rose by almost 5 per cent.
The median price of all homes in Victoria went up by 5.7 per cent, according to a recent report by Real Estate Institute of NSW.
But while this is happening at an alarming pace, it’s not all down to home prices being up.
The real estate industry is also driving this surge in house prices, particularly in the suburbs.
As we reported last year, home prices in the inner-east of Melbourne are up 40 per cent over the past five years, driven in part by the housing boom.
It’s a trend that has seen rents increase by 30 per cent in Melbourne over the last five years.
But the city’s median house price is up by only 3 per cent this year compared to a year ago.
And it’s the inner city, which is seeing the strongest house price rise.
Melbourne’s median price for all homes is up 18 per cent from last year to $1.8 million, and is up an incredible 23 per cent year on year.
That’s a massive increase in median price from a city where median house prices are currently below $500,000.
The trend is clearly the same in other major cities.
The outer-west of Sydney and Melbourne have seen their median prices rise by more than 30 per per cent since 2015.
And in Brisbane, the median house is up a staggering 28 per cent on the year.
But there’s a big difference between the inner and outer-western parts of Melbourne.
The inner-west is the real estate hot spot for house prices.
In our analysis, we looked at where house prices were highest in each of the top five suburbs.
We found that, to the west, the suburb of Bondi Beach in Melbourne was the fastest growing market in the city over the next five years in terms of median house value, while Bondi and the surrounding area were also growing fastest in the country.
But the inner suburbs, which are usually dominated by housing unaffordability and affordable rents, are also experiencing a big price increase.
Melbourne, for example, is the fastest-growing market in Melbourne’s inner-western suburbs, with a median house selling price of $1 million.
But if you’re living in the outer suburbs, it can be harder to buy a house than it is in the centre.
The average price in Melbourne is just $9,500 in the most unaffordable suburbs.
And just like in Bondi, there are only around 500 houses available in the region.
This means that, despite an unprecedented housing boom in Melbourne, the inner areas are still seeing prices rising far faster than the rest of the city.
We calculated the average median house values for inner-city suburbs in Melbourne to be $1,400 higher than the median price in the rest.
In other words, we’re seeing a huge price increase in the Inner-Western suburbs.
And that’s where the housing market has been heading for some time.
But that trend has changed over the course of the past four years.
We’ll look at what the average price is going to look like in the next few years, how the price will continue to rise in the longer term, and where we’ll see the median priced house hit $1m in five years time.
In fact, we found that the average house price in inner-urban Melbourne has increased by 25 per cent between 2015 and 2020.
This is a significant jump.
Between 2015 and 2016, the average Sydney house price increased by 27 per cent compared to just 5 per,000 in the entire city.
The biggest gainers were the inner cities, where the average increase was more than 50 per cent across the board.
The growth in the median prices in inner Melbourne is the result of the massive housing supply that has come in from new developments like the $1bn Lidcombe and Eastgate development in the CBD.
In addition, developers are now building new developments around the city and in the outback.
But it’s these developments that have driven up the prices in Sydney, Brisbane and the rest, according the latest housing market analysis by the Australian Bureau of Statistics.
The average Sydney median house cost has risen by almost $1 billion between 2015-2016.
The next-highest-cost Sydney median price is currently $1-million, but will be significantly higher by the end of this decade.
And it’s likely that the median in the capital will hit $2