The combination of a strong economy and a strong inflow of skilled migrants has caused large house price rises in the last decade in Australia.
By 2008 most of the steam had run out of the Australian property boom, as was the case in many other western economies. Sydney continues to stand out as having particularly expensive housing compared with other Australian cities. In 2007 Perth had briefly challenged Sydney for top position in the house price league, but the Perth market has fallen faster than the Sydney market.
Other Australian cities saw 20% or greater house price inflation during 2007, but prices are now rising more slowly or beginning to fall.
In June 2008 average house prices (not including units/flats) were:
| City | Average House Price June 2008 | Average House Price Dec 2007 | Average House Price Dec 2006 |
| Sydney | $542,500 | $553,000 | $526,000 |
| Perth | $496,000 | $509,000 | $502,000 |
| Melbourne | $450,000 | $463,000 | $366,000 |
| Brisbane | $437,000 | $425,000 | $350,000 |
| Adelaide | $416,000 | $400,000 | $331,000 |
| Hobart | $287,000 | $280,853 | $244,000 |
Median house prices, can of course, mask a large difference in house prices between the most desirable and the least desirable areas of cities.
In Melbourne, for example, average house prices in the most desirable suburbs, such as Brighton and Canterbury are in the region of $1.25 - 1.5 million. In less desirable suburbs, such as Broadmeadows, the average price is around $250,000.
Types of House Available
Other than in central city locations, the typical Australian house is a free standing, detached property with a garden.
Terraced houses and apartments are common in inner Sydney and Melbourne.
The average size of a modern, detached house in Australia is a generous 200 square metres. This is similar to the United States, Canada and New Zealand, and more than double the size of the average new house built today in the UK.
Typically 5 or perhaps 6 houses are built per acre in Australian suburban developments. In semi-rural areas, larger gardens are common.
Houses on several acres are available within commuting distance of most cities, although the commute to Sydney's central business district from more rural areas would be long, at one-and-a-half hours or more.