Australia's Housing Market Faces Varied 2025 Outlook

In 2025, Australia's housing market is projected to see significant regional disparities, with Townsville leading the way with a forecasted 30% growth in house prices, driven by strong economic fundamentals and population growth, according to Propertyology. Meanwhile, major cities like Sydney are expected to face declines, with a 4% decrease in median house prices due to stagnating job growth and oversupply. Key economic indicators such as inflation, interest rates, and housing supply will heavily influence the market, as highlighted by PropertyGuru. In the U.S., Realtor.com predicts home prices will increase by about 3.7%, though high mortgage rates may limit buyer affordability, leading to a less competitive but costly market. Conversely, some rental markets are experiencing declines in rent prices due to increased supply outpacing demand, particularly in cities like San Francisco and Austin. Overall, both countries are grappling with the effects of supply constraints and economic influences shaping their respective real estate landscapes in 2025.