Media releases
Australians caught in house price dilemma
30 October 2026
- 68% of Australians believe falling house prices would be good for Australia
- 75% of homeowners with a mortgage are concerned property values could fall further
- 82% of Australians say home ownership is completely out of reach for the average Australian
New Westpac research has revealed mixed attitudes towards falling house prices, with more than two in three (68%) Australians believing falling prices would be good for the country, while almost the same proportion (67%) are concerned property values could fall further.
The latest Westpac Home Ownership Report found Gen Z are the most likely to agree falling house prices would be good for Australia (78%), followed by Millennials (69%), Gen X (67%) and Baby Boomers (58%).
That view also extends to homeowners, with almost two thirds (62%) agreeing falling house prices would be good for Australia. However, concern about property values falling is highest among homeowners who hold a mortgage (75%).
Westpac Chief Executive, Consumer, Carolyn McCann, said the findings reflect the complexity of Australia’s housing debate.
"Affordability remains a significant challenge for many Australians, and these findings suggest many view lower prices as part of the solution. But there is another side to that equation. For many Australians, their home can be their biggest financial asset, so concern about falling values is understandable," McCann said.
"It's important to remember that housing markets move through cycles and buying a home is a long-term commitment. While prices have fallen, our economists expect national property prices to rise by 3 per cent in 2027," she added.
The findings come amid broader concerns about access to the housing market, with four in five (82%) Australians saying home ownership is completely out of reach for the average Australian. Among first home buyers, 65 per cent believe they’ll never be able to buy a home without an inheritance1.
When it comes to improving access to housing, Australians pointed to a range of measures beyond house prices alone. More affordable housing in established suburbs topped the list (52%), followed by reducing stamp duty and other purchasing costs (48%), higher incomes and wage growth (39%) and better transport links to outer suburbs and regional areas (31%).
“Housing affordability is about more than house prices. Australians see a range of factors influencing their ability to buy, from the type and location of housing available to the upfront costs of purchasing and their own income," McCann said.
"For aspiring buyers, understanding your financial position and the options available to you is a practical place to start your home ownership journey. A lender can help you understand what you may be able to afford and what you need to work towards.”
THREE THINGS TO CONSIDER WHEN PLANNING A PROPERTY PURCHASE
- Know your borrowing position. Before starting your property search, get a realistic idea of what you may be able to borrow based on your income and expenses. Westpac’s Borrowing Power Calculator can provide an estimate.
- Factor in the upfront costs. The purchase price isn’t the only cost to plan for. Stamp duty, Lenders Mortgage Insurance and government fees may need to be considered. Online tools such as Westpac’s Stamp Duty Calculator can help estimate some of the upfront costs of buying a property.
- Talk through your options early. A Westpac Home Lending Specialist can talk through your circumstances and home loan options, whether you’re buying your first home or planning your next move
About the research
The research was commissioned by Westpac and conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 1,165 Australians aged 18+ between 18-28 September 2026, with results weighted to Australian Bureau of Statistics population estimates.
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1 Westpac Home Ownership Report, May survey 2026.
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