Australia’s Housing Market: Why a Price Correction Is Not Only Safe but Necessary

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In a candid analysis, Eliza Owen, head of research at property data firm Cotality (formerly CoreLogic), challenges the prevailing notion that rising house prices are inherently beneficial. Owen asserts that a deliberate and managed decline in property values is both safe and essential to address Australia's escalating housing affordability crisis.​

With housing prices at record highs relative to incomes, Owen argues that relying solely on income growth to improve affordability would take decades. She critiques current policies from both major political parties, suggesting that initiatives like smaller deposit requirements or tax deductions may inadvertently fuel demand, pushing prices even higher.​

"The alternative — runaway prices, deepening inequality, and falling ownership rates — could prove more damaging in the long run," Owen warns. She emphasizes that without proactive measures to allow for a controlled decrease in housing prices, the dream of homeownership may become unattainable for many Australians.​

While concerns exist about the broader economic implications of falling property values—given that a significant portion of bank assets and household wealth are tied to real estate—Owen contends that the long-term benefits of improved affordability outweigh the risks. She calls for a shift in perspective, advocating for policies that prioritize sustainable housing accessibility over short-term market gains.