Population Growth Equal Housing Demand

While Australia’s population growth has slowed, it’s still high enough to have an impact on housing demand.

Australian Bureau of Statistics figures show that Australia’s population grew by 1.6% in the year ending September 2025 to reach 27.7 million – 423,600 higher than a year earlier.

Cotality head of research, Tim Lawless, says that the growth is 12% above the decade average but 36% down on the post-COVID high.

Western Australia had the highest population growth over the 12 months of 2.2%, followed by  Victoria and Queensland, which are both up by 1.7%.

Lawless says the current levels of population growth are continuing to put pressure on the housing market.

“For housing, there is still plenty of demand side pressure coming through, running up against ongoing supply side challenges,” he says.

“While the housing headwinds are mounting – think affordability and serviceability challenges, cost of living pressures and higher interest rates – the ongoing demand-supply mismatch should help to keep a floor under housing prices.”