New research conducted by CoreLogic has revealed that the impact of the COVID-19 pandemic on the housing market has set the stage for several trends that are currently influencing the market. Since the declaration of the global pandemic in March 2020, national housing values have experienced a remarkable increase of 44.5 percent, which is more than double the growth rate of unit values at 20.1 percent.
According to Tim Lawless, the research director at CoreLogic Australia, this disparity in growth rates can be attributed to the strong preference for “space” during the peak of the pandemic. Lawless stated that during the initial surge in values from July 2020 to April 2022, national house values rose by 38.5 percent, while unit values only increased by 16.9 percent. In the subsequent growth period from February 2023 to October 2024, the capital gain was relatively similar for both houses and units, with house values rising by 15.5 percent and units by 11 percent.
Lawless also noted that the trend for unit values has gradually increased over time, which he attributed to worsening affordability and the growing undersupply of newly built multi-unit dwellings. He explained that the convergence or even outperformance of units relative to houses in some cities is a result of affordability pressures diverting more demand towards the multi-unit sector. However, despite this trend, housing values have generally maintained a stronger growth trajectory compared to unit values.
The percentage difference between the national median house and unit values reached a record high of 32 percent in June 2022. Based on the most recent data available up to February 2025, this difference remains elevated at 31.5 percent. While housing values have experienced significant growth nationwide over the past five years, certain states have witnessed even higher levels of growth. Lawless highlighted that nationally, home values have increased by a cumulative 38.4 percent, adding approximately $227,000 to the median dwelling value. In comparison, the previous five-year period saw a much smaller increase of 20.6 percent, and the five years before that only recorded a 14.7 percent rise in the market.
One notable trend that has emerged since the pandemic is the outpacing of regional housing values compared to capital cities. Regional housing values have jumped by 56.3 percent, while the growth rate in capital cities stands at 33.6 percent. Lawless explained that “lifestyle regions” were at the forefront of capital gains during the early stages of the pandemic. For instance, home values in Byron Bay increased by 74.7 percent, followed by 70.8 percent in Gympie and 65.8 percent in Medowie. Recently, the top regional growth markets have become more diverse, including rural Queensland markets such as Townsville, Rockhampton, and Gladstone, as well as coastal Western Australian markets like Bunbury, Busselton, and Geraldton.
Despite slower growth in capital cities since the pandemic began, mid-sized capitals have led cumulative housing value growth over the past five years. Perth has experienced the highest growth rate, with housing values rising by 75.9 percent since March 2020. This increase has added approximately $348,519 to the median dwelling value. Lawless highlighted that Perth’s performance marks a significant shift from its position before the pandemic when it had the second-lowest median dwelling value among capital cities, after Darwin. Adelaide recorded the second-highest cumulative rise in values across the capitals, with growth of 73.1 percent, adding around $347,092 to the median dwelling value. Similar to Perth, Adelaide had a relatively soft run of growth before entering the current cycle.
Lawless acknowledged that while the mid-sized capitals have dominated the growth trend during the pandemic, these markets are gradually losing momentum due to various market factors. Each capital city has exhibited different trends driven by factors such as demographic flows, local economic conditions, housing affordability, investment demand, policy settings, and housing supply levels.
In conclusion, the COVID-19 pandemic has had a profound impact on the housing market, setting the stage for several trends that are currently shaping the industry. The significant increase in national housing values, the outpacing of regional housing values, and the rise of mid-sized capitals are all noteworthy developments that have emerged in the aftermath of the pandemic.
