Why home prices in the regions are still rising while Sydney and Melbourne prices fall

The regions have shown greater resilience amid a national property market slump, with housing values rising 0.6 per cent across the combined regional areas in May.

Collectively, the regional areas grew 8.8 per cent up until 31 May, 2026, with median values sitting at $941,864 according to Cotality. Pic: Marina Neil

Nationally, the property market is slowing, but the news was better for homeowners who choose to live beyond the city limits, Cotality's national Home Value Index for May reveals.