The UDIA Housing Index (UHI) provides a quarterly ‘health check’ on the state of the new build Australian housing market. Drawing from a range of data sources the UHI provides timely indicators of changes in demand, supply and costs for new residential properties across the nation.

UDIA National Research Partner

March Quarter 2025

Key Insights

The UDIA Housing Index (UHI) for the March Quarter 2025 highlights that the national housing market continues to be severely impacted by very high costs and while demand has started to moderate, supply levels remain at below average levels.
The national demand profile has materially softened over the last four quarters in line with a moderation in population growth, however the high-cost environment (for developers and consumers) allied with the maintenance of a weak national dwelling supply profile (with dwelling approvals and dwelling commencements below decade averages) continues to drive the UDIA Housing Index to a ‘weak’ demand-supply balance.
The current residential market dynamics are continuing to drive strong dwelling price growth across most State and Territory markets, leading to a further erosion of housing affordability. The lack of an adequate new dwelling supply response has contributed to the on-going crisis in the national rental market with stock availability remaining well below the decade average.
There is some indication that pressure is easing slightly in the construction employment sector with job vacancies now back to around long run average levels. With forward supply pipelines remaining underweight, the current workforce capacity is inadequate to deliver the necessary ramp up in supply, the national housing market is set to remain mired in the current crisis conditions for at least the next two years.
These extremely challenging housing market conditions underscore the need for government authorities across the nation to continue to work arm-in-arm with the residential development sector to devise many and varied (locally appropriate) solutions to help unlock new dwelling supply faster and increase the overall capacity of the Australian new build housing sector.
The Western Australian housing market remains the strongest market across all States and Territories with a UDIA Housing Index result for the March 25 quarter 15 index points higher than the national average. All major housing markets recorded a softening in aggregate performance in the March quarter. The nation’s two largest housing markets, NSW and Victoria, remain the weakest in the nation with both markets firmly in the ‘weak’ demand-supply performance band.