Older Australians Want House Prices to Fall for Their Kids 2026

Older Australians want house prices to fall for their kids' sake, challenging the long-held notion that rising property values are universally beneficial. Pete Muskens, a 71-year-old retired architect from Melbourne, is among those calling for change. He bought his first home in the early 1980s for about $30,000—less than three times the average annual wage. Today, such affordability is unimaginable for his two adult children.

The Housing Affordability Crisis in Australia

Australia's housing market has transformed from places to live into money-making assets, pushing younger generations to the brink. The decades-long crisis has reshaped family life, delaying milestones like independent living and starting a family. Many Australians in their 30s still live at home, a situation Muskens describes as an unhealthy social effect.

Generational Divide on Property Prices

While some older homeowners benefit from skyrocketing prices, others like Muskens are concerned about intergenerational equity. They believe that housing should be a home first, not an investment vehicle. This perspective is gaining traction as the government introduces property tax reforms to negative gearing and capital gains tax.

Government Reforms and Their Impact

The government's recent budget reforms aim to make real estate less lucrative for new investors by reducing incentives. These changes have faced fierce criticism from political opponents, conservative commentators, and parts of the property sector. However, supporters argue that the reforms are a crucial step in transforming houses back into homes.

Negative Gearing and Capital Gains Tax Changes

Negative gearing allows investors to offset losses against taxable income, while capital gains tax concessions reduce tax on profits from property sales. Reforming these policies could cool investor demand and make housing more affordable for first-home buyers.

Why Older Australians Support Falling Prices

Many older Australians prioritize their children's future over their own wealth. They recognize that inflated property values create barriers for younger generations, leading to social and economic consequences. By supporting policies that lower prices, they hope to restore fairness and opportunity.

• Intergenerational equity: Ensuring younger generations can afford homes.
• Social health: Reducing the number of adults living with parents.
• Economic balance: Shifting investment from speculative property to productive assets.

Challenges and Criticisms

Opponents argue that falling house prices could hurt homeowners and the economy. However, proponents believe that a gradual correction is necessary to prevent a larger crisis. The debate continues as Australia grapples with housing affordability.

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