This surge in prices has been particularly pronounced in capital cities, where median house prices have risen by 40.2% to $865,000, while regional areas have experienced an even steeper increase of 59.9%, bringing their median to $653,000.

Kate Brown, head of research at Compare Club, noted that this financial support is becoming essential for younger Australians entering the property market, indicating a significant shift in how they approach home ownership.

Since the onset of the Covid pandemic in March 2020, national house prices in Australia have skyrocketed by 451%, reaching a median price of $795,000.

However, signs of a slowdown are emerging, as overall Australian house prices fell by 0.17% in December 2024, with capital cities showing a decline of 0.25%, marking the first decrease in nearly two years.

Canberra recorded the largest drop among the capital cities, with a decrease of 0.61%.

Economic factors, including stage 3 tax cuts, have impacted borrowing capacities, while anticipated interest rate cuts have been delayed, contributing to the deceleration in housing price growth.

The affordability crisis is becoming increasingly evident, with a staggering 246% increase in high-income households spending over 75% of their income on bills.

In response to these challenges, many Australian parents are stepping in to financially support their adult children, with the average gift exceeding $75,000, according to research from Compare Club.

However, this assistance often comes at a cost, as 6% of parents are resorting to reverse mortgages or accumulating debt to help their children.

Currently, 37% of parents are contemplating providing similar financial assistance due to the soaring housing costs.