New national polling shows Australians have lost confidence across the entire housing market — buyers, sellers, renters and investors alike — reflecting deep financial stress, falling prices, and expectations of further RBA rate rises.
The SEC Newgate Mood of the Nation survey of 1659 voters between September 8–14 found:
- 56% say it’s a bad time to rent
- 45% say it’s a bad time to buy an investment property
- 44% say it’s a bad time to sell
- 37% say it’s a bad time to buy a home to live in
This is the first time polling shows negative sentiment in every corner of the market.
Why sentiment has ‘cracked’:
Tenant households are feeling the pressure following a circa 50% increase in advertised rents so far this decade, which has pushed rental affordability to a record low as a share of income.
Although the rental market is showing signs of easing, with vacancy rates drifting higher and rental growth slowing, tenants still face a tight market where rents are growing much faster than incomes.
Thus, rental affordability is worsening more slowly, rather than improving.
This takes us to the other side of the market, where conditions are also poor.
Prospective homebuyers face rising interest rates and near-record-low mortgage affordability at the same time as values are expected to continue to fall sharply.
Prospective property investors have also lost the ability to negatively gear, while facing higher capital gains taxes when it comes time to sell.
The situation facing vendors is also dire, with collapsing buyer demand, alongside a sharp increase in listings that are failing to sell.
Source: Cotality
One group that should be added to the list is state governments, which rely heavily on stamp duty receipts.
State budgets are facing heavy revenue write-downs amid plunging property prices and transaction volumes.
The upshot is that all parties are facing challenging conditions in the housing market.
