The alarming statistic that shows Aussies are ditching the property dream

A new report has revealed one in three Australians have given up on buying or investing in property.

Market researchers Vibrant Insights’ survey, published this week before the Reserve Bank sets interest rates, surveyed 4000 Australians aged 14 to 60 to track health, housing and financial sentiment from 2024 to 2026.

According to the report, 35 percent of survey respondents were “opt-outs,” saying they either couldn’t afford it or chose not to buy a first home or investment property.

This group increased from 25 percent in 2024 to 30 percent last year.

70 percent of the “quitters” were homeowners who had already given up on the idea of ​​investment properties and opted to invest their money elsewhere.

Changes to capital gains taxes have also affected how people intend to invest in housing.

A group that the survey identifies as those who want to invest in housing through other means (living in or renting out their own home) or stock market and crypto returns is shrinking due to tax changes in the federal budget.

The rate of people who think they can get rid of their mortgage loan has fallen to its lowest level in history; This rate, which was 38 percent two years ago, has now dropped to 24 percent.

The survey found that by 2025, 19 percent of people will feel negative about their lives overall; This rate increased to 30 percent this year.

Among survey categories such as friendships, relationships, hobbies, work, finances and environmental considerations, the biggest decline was in how much effort people put into their hobbies, followed closely by an additional three percent (up to 34 percent) feeling negatively about their work.

More than a quarter of those aged 30-49 say they want more children but have changed their mind; the majority blame housing costs.

The three-year study was published on Tuesday morning, shortly before the RBA kept interest rates at 4.35 per cent.

Governor Michelle Bullock warned that inflation remained “very high” and the central bank may be forced to raise interest rates for the fourth time this year.

While there is anecdotal evidence that property investors are looking elsewhere than housing since sweeping changes to capital gains taxes were announced, property prices in Sydney are expected to fall by 3 per cent this year, with Melbourne expected to see a 4 per cent drop.

The predictions come from REA Group and are that first home buyers will find it harder to get a mortgage due to high current interest rates, as well as general unaffordability.

REA group senior economist Angus Moore said the market had clearly cooled due to three consecutive interest rate hikes.

“House prices in Sydney and Melbourne have fallen for three months in a row and house prices have stagnated across the country,” he said.

“This softness is likely to continue through 2026 as the impact of higher rates continues and tax changes put pressure on investor demand.”