Adelaide’s Million-Dollar Normal

Adelaide’s housing market has shifted rapidly, with 191 suburbs now recording median house prices around $1 million. Prices that were once exceptional are now routine, with hundreds of sales above $1 million and many above $2 million. Buyer expectations have fallen—$1 million often buys properties needing major work—while mortgage stress remains as severe as ever. Entry-level options have been pushed into units: a basic two-bedroom unit in premium inner suburbs can cost roughly $750,000–$800,000, and a house that was about $800,000 five years ago can be around $1.5 million now. Funding is coming from a mix of borrowing, “bank of mum and dad,” and increasingly grandparents contributing earlier to help younger generations enter the market. Strong wage growth in some trade and resources-linked sectors is also lifting borrowing power, but many industries are not keeping pace. Geopolitical conflict is framed as potentially inflationary—via money printing and higher energy/material costs—adding upward pressure to prices, while high-quality public school zones continue to justify significant price premiums.