Global House Prices and City Rankings — 2026-09-09
Australia’s property market is in a sharp downturn, with home values dropping $34 billion in the June quarter as interest rates bite, while Portugal defies global cooling trends with the world's largest rise in real house prices. In the US, affordability has hit record lows despite falling prices in some sectors, and the UK saw its first house price decline since 2023 due to rising mortgage costs.
Global House Prices and City Rankings — 2026-09-09
Top developments
Australia records first quarterly decline since 2022
Australian home values fell by A$34.1 billion in the June 2026 quarter, marking the first quarterly decline since 2022. The total value of national property now stands at approximately A$12.7 trillion, down 0.3%. This shift is driven by higher interest rates and tax changes, with Sydney being the hardest-hit capital city. Analysts predict prices could fall another 10% if further rate hikes occur, as data shows prices are now falling in more than 90% of Australian suburbs.
Portugal leads global price growth
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 a "two-speed" global market where some European nations continue to attract significant capital inflows and demand, contrasting sharply with the affordability-driven corrections seen in North America and Australia.
UK house prices fall for first time since 2023
UK house prices have fallen for the first time since 2023 as mortgage rates climb. The typical home across Britain is now valued at £298,468, reflecting the impact of surging mortgage costs on buyer demand. This decline signals a potential shift in the UK market's resilience, which had previously held steady despite broader economic pressures.
US Affordability Hits Record Low
In the United States, housing affordability has slipped further, with a family earning the median income of $106,800 needing 34% of their income to cover the mortgage payment on a median-priced home. Despite some price adjustments, the combination of high mortgage rates and stagnant wage growth relative to housing costs has kept affordability metrics at historically difficult levels.
Local view
Japan: Local media reports indicate that used condominium prices in the Greater Tokyo Area have risen across all eight major districts, although the rate of increase in Tokyo's 23 wards has slowed. This suggests that while the Japanese market remains resilient compared to Western counterparts, momentum is moderating in the most expensive urban centers.
Germany: According to new data from the IWH (Leibniz Institute for Economic Research Halle), asking prices for residential real estate in Germany are rising significantly slower than the European average since spring 2025. This decoupling from broader European trends suggests a stabilization or cooling in the German market relative to high-growth areas like Portugal and Spain.
Context & numbers
- Global Trends: The Bank for International Settlements (BIS) reported that real residential property prices remained almost stable in Advanced Economies (AEs) in Q1 2026 (-0.2% YoY). Significant declines were noted in Canada (-7%), the United States (-2%), and the United Kingdom (-2%).
- US State Rankings: New rankings reveal significant disparities in US housing costs, with Hawaii remaining the most expensive state and Oklahoma among the least expensive.
- German City Prices: Munich remains Germany's most expensive city for apartment purchases, with a 75-square-meter existing apartment costing €605,850. Dresden is the cheapest among the top 10 expensive cities at €220,950.
On the radar
- RBA Decisions: Australian markets are closely watching the Reserve Bank of Australia for signals on rate cuts, with economists warning prices may not rebound until 2028 without monetary easing.
- UBS Bubble Index: The next edition of the UBS Global Real Estate Bubble Index will be critical for assessing risk in cities like Zurich, London, and Frankfurt, where affordability constraints are already weighing on demand.
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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