Australian Housing Costs Rose 6.5% in the Year to May 2026

Short summary

The housing group in Australia's Consumer Price Index rose 6.5% in the 12 months to May 2026, up from 6.3% in April, according to the Australian Bureau of Statistics release published on 24 June 2026.

The main annual contributors were electricity at 21.1%, new dwelling prices at 5.6% and rents at 3.6%. These figures describe price changes across the CPI housing group. They do not measure mortgage repayments or established property values.

Use the Inflation Scenario Calculator to test a constant-rate assumption, or read the inflation and purchasing power guide before comparing a scenario with actual ABS data.

Key housing figures

The ABS said annual electricity prices were heavily affected by the ending of Commonwealth and state rebates. Excluding the effect of those rebates over the previous year, electricity prices rose 3.9% annually.

New dwelling prices rose 5.6%

New dwelling prices rose 0.9% in May and 5.6% over the year. The ABS attributed the annual rise to project home builders increasing base prices as labour and material costs rose.

This series is not an index of established house or apartment values. It measures the price of new dwellings purchased by owner-occupiers and excludes land. A 5.6% rise in this component does not mean every construction quote, house price or renovation budget increased by the same amount.

For a purchase budget, enter current quotes and state settings into the Property Purchase Cost Calculator. The calculator does not forecast construction costs.

Rents rose 3.6%

Rental prices rose 3.6% over the year to May, up from 3.5% in April. The ABS said rental inflation continued to reflect low vacancy rates in most capital cities.

The CPI rent series is broad. A renter's renewal, a newly advertised property and an existing lease can move differently. Investors should use the actual rent, vacancy allowance and expenses for the property being assessed in the Rental Yield Calculator.

What the 6.5% figure does not show

The CPI housing group is often confused with mortgage costs or property values. It does not tell you:

• how much a particular mortgage repayment changed;
• what an established home is worth;
• how much a particular household's total housing budget changed;
• whether a rent increase is lawful under a state tenancy agreement;
• whether a construction contract can be varied.

Mortgage interest charges are not part of the CPI basket in the same way as rents or new dwelling purchase prices. Repayments depend on the loan balance, rate, term and payment structure. Use the Mortgage Repayment Calculator with the rate and balance you want to test.

What remains uncertain

Annual rates can change quickly when temporary rebates start or end, and monthly new dwelling prices can be affected by builder pricing and project mix. The next CPI release may revise the direction of individual components even if the broader cost pressure remains.

This release does not change a calculator formula, government concession or lender assessment rule on RealEstateCalc.

Source

• Australian Bureau of Statistics: Consumer Price Index, Australia, May 2026, released 24 June 2026 and checked 15 July 2026.

General information disclaimer

This article is general information only. It is not financial, credit, property, tenancy, tax or legal advice. CPI results are population-level price measures and may not match an individual household, property, lease or building contract. Check current quotes, contracts and relevant authority guidance before relying on an estimate.