Melbourne house prices continue to rise but still offers more affordability at the moment than the other capital cities

Last week I posted about Alan Kohler’s slightly cheeky response to Melbourne’s relative affordability. Because I love a good graph, please see the assortment below for further details.

• Melbourne median is up 17.5% in the past 5 years, but not as much as the national figures. Sydney is up by 37.9% in comparison (see this post for more details). The story is that the smaller capitals of Brisbane, Perth and Adelaide are each up around 80% over the same period. They have effectively caught up and some even passed Melbourne detached house values. This has led some of the major banks and industry commentators to highlight Melbourne as poised for growth in 2026.
• Melbourne and Victoria have had less rent growth, rising 10% more slowly than the national average.
• Melbourne and Victoria maintained lower value to income ratios.
• Melbourne and Victoria has a higher proportion of first home buyers than the other states.

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