The State of the Housing System 2025 is the National Housing Supply and Affordability Council’s second annual report. This is required under the National Housing and Affordability Council Act 2023.
The Council gave the report the Minister for Housing on 24 April 2025. It was publicly released on 21 May 2025.
Overview
Chapter 1 – The Council’s vision for the housing system
The Council breaks its vision into 8 measurable goals.
Chapter 2 – Housing market conditions
A review of supply and demand conditions in the private housing market. The review covers the period between January 2024 and March 2025. The chapter discusses how these conditions affect housing prices, rents and construction activity.
Chapter 3 – Conditions in non-market housing
Non-market housing includes social housing, affordable housing and specialist homelessness services. The chapter explores:
- funding of non-market housing
- challenges assessing the availability of affordable housing
- the scale of government assistance helping renters and home buyers access market housing.
Chapter 4 – Housing affordability
Assessments of housing affordability for renters, prospective home-owners and households with a mortgage. The chapter:
- tracks changes across all capital cities and regions
- assesses the incidence of rental stress
- explores rental stress' relationship with wellbeing and material deprivation.
Chapter 5 – Housing system outlook
National, state and territory forecasts for new housing supply and demand. The forecasts cover the Housing Accord period (2024–25 to 2028–29). The chapter describes the implications on housing affordability.
Chapter 6 – First Nations housing
Revisit the experiences discussed in the 2024 annual report. It includes updated data and insights from Aboriginal and Torres Strait Islander leaders.
Chapter 7 – Towards a better housing system
The Council makes 15 policy recommendations in 5 key policy areas. Prioritising these policy reforms will improve outcomes across the housing system. Implementing the recommendations would help achieve the Council’s vision.