Australia's housing is now worth more than $6 trillion.
Surprisingly, as banks come under regulatory pressure over their exposure to housing, the debt held against the $6 trillion is only $1.3 trillion, 22 per cent of the market, property research group CoreLogic RP Data has found. 
"For the first time in history since 2007, the market has touched $6 trillion," CoreLogic RP Data head of research Tim Lawless said. "We have never seen values this high.
"New investments are obviously more highly leveraged, but nearly half of the market which has had the benefit of time is debt free." Australia's debt exposure in housing is low compared with the US market, which has a 40 per cent debt to asset ratio, Mr Lawless added.
"US investors are not incentivised to pay down debt," Mr Lawless said.
The Australian market is large for its population compared with the US market, which is $16 trillion, and New Zealand at $810 billion.
Mr Lawless said the $6 trillion figure, which excludes vacant land, makes property the largest asset class among investors,similar to China, which favours property as an investment more than any other asset class.
"Household wealth is mostly in property which is why there is so much focus on the sector. Australian superannuation is about $2 trillion and the ASX share value is about $1.7 trillion," Mr Lawless said.
The value of residential properties has increased by about half a trillion dollars in the last year and since 2009, Australian dwelling values have exploded by $2 trillion.
The bulk of the market lies in NSW and Victoria, with both states experiencing the highest growth. NSW has 38 per cent of the market, $2.3 trillion, and Melbourne has $1.7 trillion, 28 per cent.
South Australia has 5 per cent of the market from 4 per cent in 2009 and Northern Territory grew to 1 per cent in 2015 from 0.2 per cent in 2009.
The remaining states have seen a reduction in their share of housing value, with the largest drop in Queensland.