Global House Prices and City Rankings — 2026-09-11
Global housing markets are diverging sharply, with Australia recording its first quarterly value decline since 2022 and Portugal leading global real price growth. In the US, Q2 data shows home prices rising in 47 states despite worsening affordability, while Germany’s price appreciation lags behind the European average. <!-- /headline --> **Australia’s Housing Values Drop $34B as Global Markets Diverge** <!-- /headline -->
Global House Prices and City Rankings — 2026-09-11
Global housing markets are diverging sharply, with Australia recording its first quarterly value decline since 2022 and Portugal leading global real price growth. In the US, Q2 data shows home prices rising in 47 states despite worsening affordability, while Germany’s price appreciation lags behind the European average.
<!-- /headline -->Australia’s Housing Values Drop $34B as Global Markets Diverge
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Australia sees first quarterly decline in home values since 2022
Australian home values fell by $34.1 billion in the June 2026 quarter, marking the first quarterly decline since 2022 as higher interest rates and tax changes impact the market. Sydney was the hardest hit, with national property values now standing at $12.7 trillion, a 0.3% drop. Analysts predict prices could fall up to 10% from the March peak, with Cotality data indicating falling prices in over 90% of suburbs.
Portugal leads global real house price growth while others cool
While most global housing markets cooled at the start of 2026, Portugal moved in the opposite direction, recording the largest rise in real house prices anywhere in the world. This divergence highlights the uneven recovery and resilience of specific European markets compared to broader global trends.
US home prices rise in 47 states despite affordability crisis
FHFA data reveals that home prices rose in 47 states and Washington D.C. during Q2 2026. Despite this broad appreciation, housing affordability remains critically low, with median-income families needing 34% of their income to cover mortgage payments on median-priced homes. The NAHB/Wells Fargo Cost of Housing Index indicates that affordability slipped further in Q2, challenging entry-level buyers.
German real estate appreciation lags behind European average
New data shows that the increase in asking prices for residential properties in Germany has remained significantly below the European average since spring 2025. The European Real Estate Index suggests that the German market is decoupling from the broader European dynamic, with price growth slowing down compared to neighboring countries.
Munich tops German city rankings for highest apartment costs
According to the Immowelt Price Compass, Munich remains the most expensive city in Germany for buying apartments, with a 75-square-meter existing property costing approximately €605,850. This figure is the highest among the 15 major cities surveyed, followed by other metropolitan areas like Dresden, which still commands high prices relative to smaller towns.
Local view
In Australia, local media and analysts are debating the severity of the market correction. While some commentators label the situation a "collapse," others argue that a 10% fall would merely return prices to late-2024 levels, describing such warnings as "absurd" and "in bad faith." The market is currently divided by affordability, property type, and location, with high-end properties seeing steepest falls while affordable segments remain resilient.
Context & numbers
The Bank for International Settlements (BIS) reported that real residential property prices in Advanced Economies remained almost stable in Q1 2026 (-0.2% yoy). However, significant declines were observed in Canada (-7%), the United States (-2%), and the United Kingdom (-2%). These figures contrast with the nominal growth seen in many US states, highlighting the deflationary pressure on real values.
In the UK, the latest indices reveal a market divided by affordability and location, with buyers and sellers locked in a stand-off. Meanwhile, in Germany, the disparity between rental costs and purchase prices continues to widen, making homeownership increasingly unrealistic for many, according to recent OECD studies cited by Euronews.
On the radar
- RBA Rate Decisions: Australian markets are bracing for potential further interest rate hikes, which economists warn could extend the housing downturn until 2028 if cuts are not on the agenda.
- US Mortgage Rates: Investors report the worst market conditions in three years due to rising mortgage rates following geopolitical tensions, which may dampen the Q3 momentum seen in price indices.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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