Population growth continues to quietly underpin the housing market. While the rate of growth has eased slightly from its post-pandemic peak, it remains strong enough to sustain demand across many regions.
Latest figures show the population increased by 1.6% in the year to September 2025, reaching 27.7 million. That represents an additional 423,600 people in just 12 months. It is a significant number, especially when you consider the pressure it places on housing supply.
Even with the slowdown, growth remains 12% above the decade average. At the same time, it is 36% below the surge seen immediately after COVID, when migration and internal movement spiked.
Western Australia is leading the way with population growth of 2.2%, followed by both Victoria and Queensland at 1.7%. These are the states where housing demand is being felt most strongly.
The relationship between population and property is straightforward. More people need more homes. When supply does not keep pace, pressure builds.
What makes the current situation more complex is that supply is already constrained. Construction challenges, planning delays, and rising costs are all limiting the number of new homes entering the market.
At the same time, affordability is becoming more challenging. Higher interest rates, cost of living pressures, and tighter lending conditions are creating headwinds for buyers.
Despite this, demand remains resilient. It is one of the reasons property prices have held up better than many expected. Even as conditions become more difficult, the underlying need for housing continues to support the market.
This demand-supply imbalance is not just a short-term issue. It is a structural challenge that is likely to persist. As long as population growth continues and supply struggles to keep up, there will be a floor under housing prices.
For buyers, this reinforces the importance of timing and strategy. Waiting for a major price drop may not align with how the market is actually behaving.
For investors, it highlights the long-term fundamentals that continue to support property as an asset class.
