The average price of a home in Australia has surpassed the $1 million mark for the first time, reaching $1,002,500 in the March quarter of 2023, according to the Australian Bureau of Statistics.

This milestone marks a 0.7% increase from previous averages, with Western Australia, South Australia, and Queensland identified as key contributors to the rise.

Queensland now ranks second in average housing prices, following New South Wales, which has long been criticized for its high property costs relative to household incomes.

The total value of residential dwellings in Australia increased by approximately $130.7 billion to $11.4 trillion during the same period.

Dr. Michael Fotheringham, a representative from the Australian Housing and Urban Research Institute, emphasized that while the $1 million average house price is eye-catching, it reflects a continuation of an ongoing trend of increasing house prices rather than a sudden shift.

Dr. Fotheringham also highlighted the importance of comparing these price rises with stagnating average wages, illustrating the financial challenges facing potential homebuyers.

The Australian housing crisis has its roots in decades of policy neglect, according to Dr. Fotheringham, who noted both political parties have contributed to a lack of action in addressing housing supply.

However, he mentioned that the federal government has announced intentions to deliver 1.2 million new homes by mid-2029, establishing affordability policies aimed at assisting first-time homebuyers.

These initiatives include allowing first homebuyers to enter the market with just a 5% deposit and expanding the 'Help to Buy' scheme, which enables buyers to co-purchase properties with government assistance.

Furthermore, a commitment of $10 billion has been made to expedite the construction of 100,000 new homes for first homebuyers.

Experts from the Grattan Institute, such as Matthew Bowes, warn that as house prices increase, wealth inequality is likely to grow.

The data indicates a decline in home ownership among low-income and middle-income earners, who traditionally view home ownership as a primary means for building wealth.

Bowes advocates for increased focus on rental affordability and security for those locked out of the housing market.

The pattern of increasing house prices is consistent across various markets within Australia, with Dr. Fotheringham stating that the trend has extended beyond traditionally expensive cities like Sydney to areas such as south-east Queensland, Perth, and Adelaide.

In New South Wales, a select parliamentary committee has examined the housing difficulties faced by essential workers.

The inquiry highlighted that many of these workers struggle to find affordable housing close to their workplaces, leading to what has been termed as the 'missing middle.' The committee's report suggested that no specific government agency is currently responsible for addressing the housing needs of essential workers, calling for greater coordination and a dedicated overseer.

The complexities of Australia's housing situation are accentuated by emerging reports on occupational downgrading among refugees, which highlights significant barriers to employment for skilled migrants.

A study conducted by the Australian Institute of Family Studies indicated that many refugees experience a sharp decline in occupational status upon arriving in Australia, struggling to find work that matches their qualifications and previous job experiences.

This phenomenon disproportionately affects women, with many reporting a significant drop in employment rates ten years after becoming residents.

Innovative solutions are being explored across Australian states; for example, Landcom announced plans to develop affordable housing specifically targeted at essential workers as part of a broader effort to alleviate the housing shortage.

This initiative is set to create hundreds of new apartments located near key services, emphasizing the government's recognition of the critical housing needs of frontline workers.