But as prices for established homes have risen in recent years, the affordability tables are turning.
Here in Brisbane house prices have grown a whopping 58 per cent between 2021 and 2025.
However construction costs have risen by a lower amount, 40 per cent, over the same period, reports realestate.com.au.
Why is that interesting?
That’s a dramatic shift from December 2023 when construction costs had skyrocketed so much it was cheaper to buy an established home than build a new one, economist Nerida Conisbee reports.
“Fast forward to mid-2025, and while it remains cheaper to buy than build in most markets, the gap is finally narrowing,” she writes.
“Some capital cities are now seeing house price growth outpace construction cost inflation for the first time in years – a crucial shift for housing supply.”
Increasing housing supply is a crucial step to ease affordability challenges in markets like Brisbane where demand continues to outstrip supply.
Check out how capital city house prices and statewide construction costs have grown between 2021 and 2025:
- Brisbane houses up 58% and construction costs up 40%
- Perth houses up 66% and construction costs up 56%
- Adelaide houses up 64% and construction costs up 45%
- Sydney houses up 19% and construction costs up 40%
- Darwin houses up 13% and construction costs up 13%
- Canberra houses up 10% and construction costs up 41%
- Melbourne houses up 4% and construction costs up 25%
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