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Outer Suburbs Tipped to Lead as Australia’s Housing Growth Cools in 2026

Economists warn possible RBA rate rises threaten momentum.

Overview

  • Major forecasts point to modest national gains in 2026 of roughly 4–6%, with Domain at 6% for houses and 5% for units, ANZ at 5.8%, CBA at 4%, NAB at 6% and Westpac revised to 6%.
  • Outer-suburban houses are expected to log the strongest increases as first-home buyers and investors chase more affordable options.
  • Government support through an expanded 5% deposit scheme and a shared-equity program is expected to bolster activity at the lower end of the market.
  • Late-2025 indicators showed cooling conditions, with auction clearance rates sliding to the high 50s and high-end Sydney pockets recording mild price falls.
  • Analysts see affordable regional areas, including Far North Queensland and parts of Western Australia, likely to rise, with some rentvesting by first-home buyers.