Land Price Rises Strain Affordability

The pace of median land price growth has eased slightly but not enough to improve affordability.

The Housing Industry Association’s (HIA) latest Residential Land Report says median land prices rose by just 0.4% in the March quarter to $403,570.

Year-on-year medians are 8.7% higher – growth which is three times faster than wages, according to HIA Senior Economist Tom Devitt.

 The report analyses 52 major housing markets in Australia. It also shows that the number of residential lots sold dropped by 7.6% during the quarter.

Devitt says the combination of high land prices and weaker sales means Australia is running short of shovel-ready land.

“Population growth remains strong, new households continue to form and Australia continues to build fewer homes than are needed,” Devitt says.

Oliver Hume’s Q2, 2026 Quarterly Market Insights report says across Australia there are large differences in the underlying demand-supply balance for land.

It says Melbourne had a median land value of $404,000 in the quarter, Southeast Queensland is $544,900 and Adelaide is $309,500.