Approvals vs Reality The Housing Crisis Explained
Hotspotting
One of the many ways media misinforms Australian consumers is their misunderstanding of the difference between building approvals and actual construction of new dwellings. Right now, at a time when we have major dwelling shortages and construction costs are so incredibly high, there is a very important distinction between the number of dwelling approvals and the number of homes actually being built. The difference between the two is quite stark and it speaks to the biggest single problem amid the housing crisis – approvals often are not translating into actual construction of homes, because...
info_outline
Why Apartments Are Booming in 2025
Hotspotting
The Great Australian Dream still exists, it’s just that - for many - it now means owning an apartment, not a house with a white picket fence. As property prices continue to grow, the dream of owning a freestanding house has morphed into the dream of owning an apartment - for more and more Australians. Apartment living is no longer just a financial choice, but a conscious decision to seek out a different way of living - a more affordable and low-maintenance lifestyle. The percentage of Australians who live in a freestanding house has been declining since the beginning of the new...
info_outline
Brisbane: Australia’s Hottest Market
Hotspotting
Brisbane was one of the nation’s boom markets in 2024 and likely to do even better this year. The price data shows that Brisbane delivered a strong performance last year, both with house prices and in particular unit prices – but was third in the capital city growth rankings behind Adelaide and Perth. Figures from PropTrack and CoreLogic show Brisbane house prices overall were up 10% last year and unit prices around 15%. In 2025 we expect Brisbane to have another strong year and to overtake those other cities to be the national leader on price growth. ...
info_outline
Australia’s Housing Crisis – How Did We Get Here & How Do We Fix It? | The Property Playbook
Hotspotting
🏡 Australia's Housing Crisis: Causes & Solutions With housing affordability at record lows and supply failing to keep up with demand, how did Australia's property market reach this crisis point? More importantly—how do we fix it? In this special episode of The Property Playbook, Tim Graham is joined by an expert panel to tackle one of the most pressing issues facing Australian homeowners, investors, and renters: 🎙️ Panel Guests: ✅ Michael Sukkar – Federal Shadow Housing Minister ✅ Kelly Ryan – CEO of the Real Estate Institute of Victoria (REIV) ✅ Terry Ryder –...
info_outline
Mining Towns
Hotspotting
Some investors are attracted to the cheap house prices and very high rental yields in resources sector towns but recent events in two of the nation’s iconic locations demonstrate why this can be a strategy fraught with peril. Hotspotting methodology dictates that a diverse economy is a core factor in any location we are willing to recommend – which means locations dominated by one industry sector seldom make it to our hotspots reports. A country town solely reliant on agriculture, a coastal enclave where everything depends on tourism and mining towns are all places we shy...
info_outline
Shallow Analysis
Hotspotting
I sometimes despair for Australians trying to make sense of real estate markets, when the standard of analysis and commentary in news media is so poor. Knee-jerk responses to short-term data sets from economists, journalists and often from the big-name research houses create a mass of confusing, conflicting and contradictory commentary. The commentary around price data is the worst example of this. For a long time, the biggest problem for consumers trying to make sense of market events has been commentators putting too much importance on short-term results. ...
info_outline
Regional QLD: 2025’s Hottest Market?
Hotspotting
Regional Queensland had a pretty good year for price growth in 2024 but I’m predicting it will have an even better one in 2025. There’s mounting evidence that the combined weight of internal migrants moving to Queensland and investors increasingly pivoting from Western Australia to Queensland will drive significant price uplift this year. In 2024, according to PropTrack figures, the median house price for Regional Queensland increased 10%, which was well above the national average (4%), and better than our three biggest cities, but was slightly below the level of growth achieved in...
info_outline
Next $1M Suburbs Revealed!
Hotspotting
Since the start of the pandemic in 2020, many of Australia’s property markets have experienced some extraordinary price growth. Many locations, both city-based and regional, achieved unprecedented price increases with median house and unit prices soaring as demand hit new highs. Where once a million-dollar house or unit median was unusual, that recent growth launched many locations into that club for the first time. As of January 2025, there were 1,194 suburbs or towns with a median house price or median unit price of $1 million or more – 50 more than in September 2024. These figures show...
info_outline
Chalmers vs. Landlords: Who’s Right?
Hotspotting
Was the Federal Treasurer being serious when he suggested that investors pass on the new interest rate cut to tenants in the form of cheaper rents? Has Jim Chalmers lost the plot completely or was he making a shallow pitch to voters on the eve of a Federal Election? To suggest that investor owners are in a position to hand out financial benefits to tenants because of this one, very small, isolated reduction in their costs suggests that Chalmers is either divorced from reality or he’s having a cheap shot at landlords to win favour with renters and maybe a few extra votes. I have to say that...
info_outline
$1 Million Homes: Australia’s Housing Crisis
Hotspotting
One of the most significant housing stories in the past year has slipped under the radar of news media, with very little commentary. The latest official data from the Australian Bureau of Statistics shows that it now costs over $500,000 to build the average house in this country. That’s the cost of construction of the dwelling and doesn’t include the land price. Given that the price of residential land is also escalating to record price levels, the reality is that the typical house and land package in a capital city is beyond the reach of most young buyers. This, in...
info_outlineIf you’re confused about what’s happening with rents in Australia, you can be forgiven.
That’s especially so if you use news media as your main source of information about residential real estate.
The information – or perhaps more correctly, misinformation – in news media is highly confusing and in many cases contradictory, with one headline saying the complete opposite to another.
Here are two headlines that appeared on the same day, the 10th of January:
The worst is over: slowest rise in rents in four years
Affordability crisis: tenants feel the pinch as rents surge
So, as usual, Australian real estate consumers need to look elsewhere, somewhere other than mainstream media, to find out what’s really happening in housing markets.
One of the strange things about residential rents, which pops up regularly in news media, is the bizarre notion that if the latest stats suggest that the rate of growth in rents is slowing, then tenants across the nation are celebrating.
They’re apparently popping champagne corks because the rate of rental growth currently is less than it was last year.
Let’s be clear: the greatest wish of tenants is NOT slower growth in rents. It’s NOT for rents to stop growing. And contrary to the apparent belief of The Greens, they don’t want a rental cap. What they want is for rents to FALL.
People who rent in Australia, about a third of households, want to see a bigger choice of places to live in – in other words, they want higher vacancies. And they want rents to come down.
There are two main reasons why that isn’t happening and cannot happen:
(1) because vacancies are at historic lows, as they have been now for three years, and there are no remedies in sight; and
(2) because interest rates are persistently high and the owners of rental properties need high rents to cover their costs.
Having said that, it’s clear that - in some locations - rents have reached a ceiling and are unlikely to go much higher in the short term. Tenants cannot keep paying higher and higher rents – and higher and higher proportions of their incomes – on rental accommodation.
That is why the rate of growth in rents has slowed in SOME – but certainly not all – locations across Australia.
But the true wish among tenants – for rents to decline – is highly unlikely to happen any time soon.
SNIPPET:
There’s a lot of confusing and conflicting information in mainstream media about what’s happening with residential rents.
Some headlines have declared that the worst is over for tenants because the rate of growth in rents is slowing down – as a national average.
But other headlines have claimed that rents continue to surge higher and tenants continue to be in a world of pain.
The reality is that rents are still rising, although in SOME locations the rate of growth is slowing down.
But with vacancy rates continuing to be at historic lows in most places across Australia, and interest rates stubbornly high, we don’t have the conditions for rents to fall any time soon – particularly as there are no solutions in sight for the shortage which is causing rents to be high and rising.