23 August 2016 Last updated at 02:09 BST
It's the world's third least affordable place to buy. And with most people preferring to live in the capital cities, prices there have risen by more than a third in the past five years.
Charities are now offering buyers financial help to purchase their first home.
Phil Mercer reports from Sydney.
Getting on the property ladder can be tough for home buyers the world over, but in Australia the property dream is slipping away for many.