[Podcast] Forget Median Prices! Discover the Real Way to Gauge Housing Affordability with Simon Kuestenmacher

Today we're going to talk about why medium prices may not be the best gauge for housing costs.

Now, if you're like most property investors or people interested in property, apart from auction results, medium prices are probably the most quoted statistic, but maybe they're not the right way for you to judge how our housing market's going.

Maybe it's not the best benchmark, and my discussion today with leading demographer Simon Kuestenmacher may challenge some of your perspectives.

Rethinking home affordability

In this episode, Simon and I discuss the dynamics of the Australian housing market.

We challenge traditional perspectives and offer new insights into the current housing landscape, focusing on the shifts in wealth distribution, job market changes, and demographic influences.

• The limitations of using median house prices as a measure of housing affordability in today's market
• The shift from a bell-curve to a U-shaped wealth distribution and its implications for housing market analysis
• Focusing on specific measures, like the median price of particular home types in specific suburbs, for a clearer understanding of housing costs
• The impact of the erosion of middle-skilled jobs on the housing sector
• The political decisions contributing to the shortage of tradespeople and the resulting demand for luxury properties
• The distinction between housing affordability and house prices, emphasizing the income-to-price ratio
• The evolution of housing expectations and construction trends affecting market entry for new buyers
• Future political and demographic changes that could influence Australia's housing policies
• Potential solutions for making housing more affordable, such as tax reductions on new developments
• The importance of demographic research in equipping policymakers and businesses with insights for crafting accessible housing strategies

The episode concludes with a look toward the future of Australia's housing market, considering the role of demographic shifts and political changes in shaping housing policies.

Links and Resources:

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About Michael Yardney

Michael Yardney- founder Metropole Property Strategists has been voted one of Australia’s 50 most influential Thought Leaders.

While he is best known as a property expert, Michael is also Australia’s leading expert in the psychology of success and wealth creation.

Michael is a #1 best selling author of 9 books and frequently challenges traditional finance advice with innovative ideas on property investment, personal finance and wealth creation.

Follow Michael on Linked In or Instagram

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About Simon Kuestenmacher

Simon Kuestenmacher  is co-founder and Director – The Demographics Group

Simon is a prolific media commentator on demographic and data matters and a columnist for The New Daily and The Australian newspapers.

He ranks as one of the world’s Top 10 influencers in data visualisation. If you can’t get enough of the kind of data that explains how the world works, make sure to follow Simon on Linked In or X (formerly Twitter) or any of his other social channels.

Click here for a media enquiry or if you would like to book Simon Kuestenmacher for a speaking engagement. His presentations and quirky observations are enjoyed by audiences from the financial services, property, government, education, technology, retail and professional services industries, among others.

Some of our favorite quotes from the show:

“But let's just go back to a point you made a moment ago: Australia is no longer a middle-class society. We tend to think we are, but there's rich folk and poor folk and fewer in the middle, as you said.”-  Michael Yardney

“Today, everyone's got to have their own bedroom with an en suite and each house needs a media room. Maybe the lot size isn't as big, but we're building massive houses in Australia compared to the rest of the world.” - Michael Yardney

“Currently, it seems that there's no easy answer in sight because governments are not prepared to lower the price of established properties. On the other hand, they're really very keen to tax new properties being built.” - Michael Yardney

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