Each rate rise locks tens of thousands out of home ownership, research finds
In short:
A rate rise is estimated to cause an immediate 5 per cent reduction in home purchases.
Economic modelling suggests the home ownership rate would fall by 0.3 of a percentage point and take more than a decade to recover.
What's next?
Markets and economists are almost certain the RBA will announce a rate rise on Tuesday.
https://www.abc.net.au/news/2026-09-25/rate-rise-home-ownership-impact-study/107191644Open linkView original on aussie.zone
12 replies
You know what are the main causes of people not buying houses?
Sky high house prices and low wages
Ah yes, its the rate rises and not the thousands of unoccupied homes preventing people from becoming homeowners.
yeah… rate rises which curb inflation and thus cost of living increases… there are no good options when you want to stop people buying things they want
Main problem is energy prices are the cause of inflation atm and increasing interest rates isn't improving the situation, and the fed have no other real options
the what now ? The RBA or Reserve Bank is all I've ever heard them called, never heard them called "the Fed", that's a concatenation normally reserved for the "Federal Reserve" in the US.
Yes the RBA
the source of inflation isn’t all that relevant in terms of interest rates though… they aren’t going to solve the problem (rate changes never do) but they cool the rest of the economy in aggregate and cut off wage-price spirals
it doesn’t really matter if you’re paying 20% of your wage in energy bills if the remaining 80% still allows you to buy whatever you want. inflation only comes down when discretionary spending slows
rate hikes don’t target inelastoc spending like food and energy; they target things like home and car purchases which reduces the amount of cash sloshing around
exactly and we're still not seeing cuts to discretionary spending ... yet, just lots of complaining though :) It was expected to and hence the stock prices of discretionary spending business like JB HiFi etal took a hit but new car sales are up, travel is up etc
I'm not one to lecture though... we just spent 7 months travelling Asia and we have zero debt (own a very modest cottage in a small rural village) , an ecar charged from solar for free, electricity itself is free (FIT from solar and away for months lets the credit build) as much free beef as we can eat, (farmer agists his cows on my back paddock and pays me with beef and some $) a gf who is a part time chef and loves to veg garden and cook superb meals, fruit trees out the ying yang and my interests and activities when back in Aus. are mostly free (hiking, MTB riding, kayaking, fishing, veg. gardening, the library I can walk to is free etc). Currently life is very good.
How can it when there are a finite set of homes?
There are probably enough homes for everyone who wants to buy a home. The problem is that too many people own more than one home. My own landlord owns at least four investment properties - I don't know how many.
Its quite a weird mindset there. Pretty much the only area of reddit I visit are the economy ones. I recently saw a article and thread clearly aimed at investors on where else (other countries) they could invest and the yields etc as a result of dropping yield on Aus property. The amount of people that contributed and seemed to think that property investment is some kind of right was astounding.Even the fact that they are looking to monoplise from other countries. It is a disease.
They need to be taxed and social housing boosted.
I guess they would also have to be empty and/or in locations people want them.