[PODCAST] How Can Property Prices Keep Rising When So Many Australians Can’t Afford to Buy?

Have you ever looked at today’s property prices and wondered, How is this even possible?
 

How can values keep climbing when interest rates are still high, affordability is stretched to breaking point, and so many Australians feel locked out of the market?

You’re not alone. It feels counterintuitive. It feels unfair. 

And for many, it feels completely unsustainable. But here’s the uncomfortable truth about our housing market - and it’s the part most people don’t want to hear. 

Property prices don’t rise because the average Australian can afford them. They rise because the marginal buyer – the person actually able to transact today – can. 

And right now, that marginal buyer looks very different from the one we had even a decade ago. 

Takeaways

• Property prices are rising due to the marginal buyer's ability to transact. 

• Wealthy buyers are dominating the market, driving prices up. 

• Downsizers are reshaping the market by purchasing debt-free properties. 

• Government incentives are pushing more buyers into the market. 

• Buyers are adapting by compromising on location and property type. 

• Structural under supply is a significant factor in rising prices. 

• Affordability issues are sidelining some buyers but not all. 

• The Bank of Mum and Dad is a major influence in property transactions. 

• Investors need to focus on quality assets in gentrifying suburbs. 

• Long-term market predictions indicate continued price growth despite challenges. 

Links and Resources:  

Answer this week’s trivia question here - https://www.propertytrivia.com.au/ 

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 Michael Yardney 

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