Why the horror warnings about Australia’s ‘collapsing’ housing market are absurd – and very much in bad faith | Greg Jericho
News Source
•Wed, 09 Sep 2026 15:00:05 GMT
📰 What Happened
Economist Greg Jericho says the panic about Australia's collapsing housing market is overblown and dishonest. In the June quarter, the total value of Australian housing fell by $34 billion. That sounds huge, but it is just 0.3 per cent. All homes together are worth about $12.18 trillion.
The total is still $948 billion higher than a year ago. Even a 10 per cent fall from the March peak, as one bank has suggested, would only take prices back to late 2024 levels. Prices remain extremely high.
🔍 The Backstory
Jericho says the scare campaign started before the federal budget. Vested interest groups and the opposition insisted that changes to the capital gains tax discount and negative gearing would not affect prices. Now the same voices blame those changes for the falls.
Three interest rate rises also helped cool the market. Jericho argues Labor is in damage control over falling prices when it should be taking credit. The reforms were meant to make housing fairer. Modest price falls are the point, not a disaster.
🎯 Why It Matters
Scary headlines can push people into bad decisions, like selling in a panic or delaying a purchase. The real numbers show prices are still very high. Calm, accurate information helps ordinary Australians plan their biggest money moves.
Economist Greg Jericho says the panic about Australia's collapsing housing market is overblown and dishonest. In the June quarter, the total value of Australian housing fell by $34 billion. That sounds huge, but it is just 0.3 per cent. All homes together are worth about $12.18 trillion.
The total is still $948 billion higher than a year ago. Even a 10 per cent fall from the March peak, as one bank has suggested, would only take prices back to late 2024 levels. Prices remain extremely high.
Jericho says the scare campaign started before the federal budget. Vested interest groups and the opposition insisted that changes to the capital gains tax discount and negative gearing would not affect prices. Now the same voices blame those changes for the falls.
Three interest rate rises also helped cool the market. Jericho argues Labor is in damage control over falling prices when it should be taking credit. The reforms were meant to make housing fairer. Modest price falls are the point, not a disaster.
Scary headlines can push people into bad decisions, like selling in a panic or delaying a purchase. The real numbers show prices are still very high. Calm, accurate information helps ordinary Australians plan their biggest money moves.