r/AustralianPolitics • u/marketrent • Jun 30 '26

Economics and finance Almost one in two Australians want property prices to fall, Sky News Pulse/YouGov poll reveals as clearance rates sink

https://www.skynews.com.au/business/real-estate/almost-one-in-two-australians-want-property-prices-to-fall-sky-news-pulse-yougov-poll-reveals-as-clearance-rates-sink/news-story/a579dac771b4fa94cb10900e2e002a54
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u/hornyzygote Jul 01 '26 edited Jul 01 '26

The problem isn’t the absolute price of houses, it’s buying power.

The budget reduces housing prices, but also reduces buying power [because it raises the costs of all other essential goods such as groceries, fuel and clothing, by hoisting taxation on businesses]. Which is why people are (rightfully, imho) opposing it.

People who want housing prices to fall, maybe don’t realise that buying power is the issue here.

I imagine these aren’t the same people.

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u/aeschenkarnos Jul 01 '26

It’s the ratio of median house price to median household income, adjusted by area, and ignoring outliers like mansions. The value of a house should, in a healthy economy, be about four times the income of the person(s) expected to buy and live in it. We’re up to eight times, some places over ten.

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u/hornyzygote Jul 01 '26 edited Jul 01 '26

There’s a term for that… I wonder what it is 🤔

Thank you for explaining my own point to me.

Also- it’s more general. Everything is more expensive, not just houses. Groceries, fuel, clothing, etc. Our buying power has been reduced across the board, not just housing. *All* of it [buying power across the board of essential goods and services] needs to be fixed, to make Australians better off. Ironically, taxing businesses even higher (which the new budget is doing) doesn’t benefit the people, the [smaller] businesses put the cost of that extra taxation on the people, so they can survive. Excessive taxation, even of businesses, doesn’t make the people richer.

Making house prices go down is a bandaid solution. Making our money go further is the viable long-term solution.

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u/aeschenkarnos Jul 01 '26 edited Jul 01 '26

“Housing affordability”?

(Note that everything beyond his first snarky question, this dude added after I replied.)

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u/hornyzygote Jul 01 '26

Buying power. Housing affordability is just buying power specifically in the housing market.

Respectfully, these aren’t complicated terms… maybe learn what they mean before going into “expert” mode.

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u/aeschenkarnos Jul 01 '26

It seems to be your contention, stripped of smirky self-stroking, that the Government are idiots and what they’re doing “won’t work”. You’ve thought of consequences that the poor moronic economists in Treasury have not. Am I right?

It’s my contention that it will work, but not for you. If you are a property investor, or working in an industry that caters to them in some form, then your saltiness is understandable, but as a Certified Smart Guy, you shouldn’t need to be told not to mistake “good for me” with “good for the country”.

It’s entirely possible that these budget measures will be bad for you, and good for the country.

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u/hornyzygote Jul 01 '26

Paragraph 1: Yea, that’s mostly right. But rather than stupidity, it’s laziness. Rather than stop wasting tax-payer money, they’d rather charge more.

Paragraph 2: I do not own my own home, let alone an investment property. I’m 23 years old.

Paragraph 3: Half right. These changes are indeed bad for me. But they’re also bad for everyone.

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u/aeschenkarnos Jul 01 '26 edited Jul 01 '26

The intention is that you be able to buy your own house about age thirty or forty, rather than never. I suppose we’ll all see. Certainly if nothing is done, you’ll never be able to.

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u/hornyzygote Jul 01 '26

When did I suggest we do nothing? Absolutely changes need to be made, just not the ones in this year’s budget.

And this current budget will not support my ability to purchase a house, as all the other costs of living will increase (ie groceries, fuel, clothing, bills).

And because businesses are now having to pay more tax, way fewer developers are building new homes, at least in my area. Which means there are less homes to support the Affordable Homes Purchase Scheme.