Australia consistently ranks near the top in the world for household wealth.
According to the UBS Global Wealth Report 2025, Australia had the second highest median household wealth in the world, after only Luxembourg.
However, unlike in other countries, real estate makes for the majority of Australia’s household wealth.
Source: The UBS Global Wealth Report 2025.
Australian housing values have increased relentlessly over the last 30 years.
As illustrated below, the average Australian dwelling value was just over $1.1 million in the March quarter of 2026, up from around 491,000 in the September quarter of 2011:
In per capita terms, Australia’s housing stock was worth a record high of $439,200 in the March quarter of 2026, up 10.2% year-on-year:
This surge in dwelling values has underpinned the rise in Australian household wealth.
According to the latest household wealth data from the Australian Bureau of Statistics (ABS), released last week, net household wealth per capita hit a record high of $682,750 in the March quarter of 2026, with dwelling assets (58%) accounting for almost two-thirds of total household assets:
The March quarter of 2026 was likely the peak for Australian household wealth, given that dwelling values have since fallen, according to Cotality:
My view is that Australia’s housing market is likely to experience its sharpest price correction in at least 40 years, which will shave household wealth, especially in inflation-adjusted terms.
Source: Cotality
Given that Australia’s dwelling stock was valued at $12.3 trillion in the March quarter of 2026, even a 5% decline in dwelling values would wipe out more than $600 million of value from household balance sheets.
Lower home prices are a necessary condition for homes in Australia to become more affordable.
