Good news amid the tough times in housing – report
In a deep analysis of a property market under stress, leading realtor John McGrath looks for the positive points and potential solutions in 2026.
REAL estate sector leader John McGrath recently published his McGrath Report 2026* with the provocative headline, Have We Run Out of Homes?
The short answer is, not quite… and he believes the housing supply crisis might be getting better.
The fundamental problem, says McGrath, is that over half our population is crammed into Sydney, Melbourne and Brisbane, creating massive price pressure and property density.
Only 22 per cent of Australians are satisfied with the availability of good and affordable housing. A figure that drops to 16% for those under the age of 34.
Compounding the situation is that new borrowers are spending 50% of their income on repayments.
Home prices are eight times income. Potential buyers need to save for over a decade for a 20% deposit. Renters give 33% of their income to landlords.
“So, what’s the answer?” McGrath asks. “I believe the main reason for Australia’s housing contradiction is accessibility – and not land scarcity.
“We need to focus on supply bottlenecks. We need to free up people’s options of where they can live.”
That means streamlined development processes, faster approvals, and better infrastructure: changes already happening in many areas.
“Despite these issues, I believe that Australia’s property market does have several reasons to celebrate,” McGrath adds.
“Firstly, housing demand is moderating and expected to stabilise at about 175,000 households annually from 2026.
“Construction cost growth is slowing down, and State governments are beginning some planning reforms, with the aim of expanding supply options.”
McGrath’s report also has his hot property tips for 2026. They include:
NSW: Tennyson Point, Ashbury, Newport, Sans Souci, Haberfield, Norah Head.
VIC: Northcote, Essendon West, West Melbourne, Box Hill, Carisbrook.
QLD: Redcliffe, Coorparoo, Clear Island Waters, Peregian Beach.
TAS: Battery Point, Midway Point, West Launceston, Miandetta, Acton.
- The full report is available at https://www.mcgrath.com.au/mcgrath-report
