Why investors don’t really drive Australia’s property prices
New research challenges one of the biggest assumptions in the housing affordability debate, with important lessons for anyone building a long-term property portfolio.
New research suggests lifestyle appeal and emotional buying decisions have a greater influence on house prices than investor activity. (Image source: khunkornStudio/Shuttertock + API Magazine)
The political argument is that investors drive up house prices and make home ownership less affordable for everyone else.
While there are periods of time and specific locations where investment activity has been stronger than normal, it is still overwhelmingly the case that owner-occupiers dominate Australia’s property market and are the group that has the biggest influence on property prices nationally.
The research shows that the strongest capi…
