When borrowing capacity is fixed and prices are not, location becomes the lever. New research from realestate.com.au's New Homes Consumer Survey 2026 shows that is exactly what Australian property seekers are doing — casting their search wider than at any point on record.
The survey, which canvassed more than 2,000 property seekers active in the new homes market, found that house and land buyers plan to purchase an average of 32km from where they currently live — up from 26km in the equivalent 2024 survey. Apartment buyers are moving further too, with the average distance rising to 28km from 22km two years prior.
As prices in capital cities remain elevated, buyers are accepting longer commutes in exchange for a foothold in the market.
REA Group senior economist Angus Moore (pictured) said the trend aligned with what the broader market had been showing.
"With affordability at very challenging levels, we have been seeing more outlying, more affordable areas perform a bit better," he said, adding that the numbers were "consistent with buyers looking a little further afield to help manage the otherwise very difficult state of housing affordability."
Canstar analysis puts a dollar figure on that squeeze: three consecutive RBA hikes in 2026 have cut maximum borrowing capacity by around $37,000 for a single average-income borrower and $73,000 for a couple, while adding approximately $272 a month to repayments on a $600,000 loan.
The budget figures from the same realestate.com.au survey reinforce the picture. The average house and land budget climbed nearly 10% to $1.048 million in 2026, up from $954,000 in 2024, while apartment buyer budgets rose 5.7% to $988,000. Yet with median capital city house prices now at $1.012 million — a 6.4% annual gain — distance has become one of the few variables buyers can actually control.
The shift is most pronounced among apartment seekers. The share willing to buy 50km or more from home nearly doubled between surveys, from 7% to 13% — a signal worth noting for brokers active in the unit lending space, particularly in Sydney and Melbourne. Apartment buyers stretching further from the CBD tend to be chasing price points rather than lifestyle.
Even as buyers look further afield, their standards for local amenity are holding firm. The 2026 research found growing interest in the concept of a 20-minute neighbourhood — communities where daily needs can be met within a 20-minute walk — with the proportion of interested respondents rising from 38% to 43% across both buyer segments since 2024. Grocery stores, medical facilities, parks, cafes, and retail stores all ranked as priorities for buyers evaluating outer-suburban or regional locations.
For brokers, the message is simple: clients are already moving the goalposts on location — the question is whether their pre-approval strategy has kept up.
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