The UDIA Housing Index (UHI) provides a quarterly ‘health check’ on the state of the new build Australian housing market. Drawing from a range of data sources the UHI provides timely indicators of changes in demand, supply and costs for new residential properties across the nation.

UDIA National Research Partner

December Quarter 2025

Key Insights

The Australian housing market continues to be impacted by high costs and a subdued supply profile which are collectively contributing to the national UDIA Housing Index (UHI) remaining firmly in the ‘Below Average Performance’ band.
The UDIA Housing Index for all of Australia remained flat in the December quarter to finish at 94.01, but this is up 6.4% on 12 months earlier. This reflects a modest recovery staged across the last four quarters, with a quarterly softening in key supply side indicators arresting the potential for a substantive quarterly UHI improvement in December.
The current UDIA Housing Index reading is 3% below the decade national average and 14% below the series peak achieved in June 2021.
The UDIA Housing Demand Sub-Index increased by 2% in the December Quarter to 107.07 points which is down 14% on the series peak (achieved in September 2022) but is 6% higher than the decade average.
The return to more normalised levels of population growth and owner occupier dwelling lending has helped stabilise the UDIA Housing Demand Sub-index around long run average levels, despite on-going weakness in new dwelling sales.
After six consecutive quarters of positive growth the UDIA Housing Supply Sub-Index trended downward in the December quarter to close at 101.5 index points – back to a long term average level.
Despite improvement in dwelling approvals in recent quarters, continuing to weigh negatively on the UDIA Housing Supply Sub-Index is the underweight national dwelling commencements profile and the ongoing paucity of rental listings.
There was a further 1.2% drop in the UDIA Housing Costs Sub-Index in the December quarter which reflects the 75 basis point reduction in retail mortgage lending rates since January and a slight drop in residential house construction input costs.