Aussie Homeowners Just Gained $82,000 on Average in Home Equity

New year, new numbers, and they are looking pretty healthy for property owners.

After a strong 12 months in the property market, plenty of households are walking into 2026 with more wealth behind them. That lift in equity in your home can open up real options, not just feel-good headlines.

Your place is not only where you live. For many Australians, it is also a big part of their long-term wealth plan.

And 2025 proved it.

Even if the festive season has your bank account feeling a bit tired, a jump in your property value could mean you are roughly $82,200 better off on average heading into 2026, according to PropTrack.

So what is driving it, and what can you do with the value you have built?

Equity in home: 2025 was a bumper year for homeowners

Australia’s housing market wrapped up 2025 at a record high. PropTrack puts the momentum down to rate cuts, stronger investor demand, and expanded incentives for home buyers.

Nationally, the median home value climbed 8.8% across the year. That added $82,200 to the median value over 12 months.

Capital cities saw even bigger jumps in many cases:

• Sydney: median value up $101,200 in 2025
• Brisbane: median value up $135,900
• Adelaide: median home price up $101,600
• Perth: median home price up $148,100

If you have watched your property value rise, you are probably asking the next question. “How do I put that to work without making a mess of my finances?”

Here are three practical ideas worth considering.

Equity in your home: 3 smart moves to consider for 2026

When your property value rises, the gap between what your home is worth and what you owe can grow too. That extra buffer, home equity, can be useful if you have a clear plan and the numbers stack up.

1) Give your place a makeover

If your home is feeling tight, dated, or simply not working for your day-to-day life, your equity can help fund renovations.

A well-planned renovation can also increase your property’s value. That means you can improve how the home feels now while also supporting the long-term value of the asset.

Think functional upgrades first. Layout, storage, and wear-and-tear fixes usually deliver more day-to-day benefit than flashy add-ons.

2) Invest in a rental property

Property can be a long-term investment, plus it may provide rental income. It can also come with tax outcomes, so speak with your tax professional for advice that suits your situation.

And no, you do not need to be “rich” to become a landlord.

Teachers, nurses, truckies, and cops are some of Australia’s most prolific property investors. Many get there by using what they already have in a smart way.

One option is using equity in a home instead of cash as a deposit on an investment property. This can help you keep your savings available while using one asset (your current home) to help fund another (the rental property) that may also grow in value.

3) Refinance and make a stronger loan work for you

A higher home value is not just something to mention at a barbecue.

It can also help you reduce interest costs. When your home’s value rises, your loan-to-value ratio (LVR) can drop. LVR is your loan amount as a percentage of your home’s market value.

A lower LVR can make you look less risky to lenders. That can improve your chances of securing a sharper interest rate.

Refinancing is not only about chasing a better rate, either.

A new loan could give you features that suit your current life better. It could also release funds for other goals, such as school fees, a family holiday, or consolidating personal debt to simplify your repayments. In many cases, it is about using the equity in your home with a clear purpose, not just because it is available.

Talk Osinski Finance About Putting Your Equity to Work

If your equity in home is growing but you are not using it strategically, it is worth asking why.

At Osinski Finance, we help Australians with the big three: securing a home loan, investing in a property, and refinancing your home loan when the numbers stack up. If you want to make the most of your home equity through a smarter loan setup, a renovation plan, or your next purchase, get in touch and we will map out your next steps.