Some 68% back lower prices, yet 75% of mortgage holders fear further falls
Australians are torn over falling house prices, with most saying lower prices would benefit the country even as many worry about values sliding further, according to Westpac’s latest Home Ownership Report.
The survey of 1,165 Australians, conducted by Lonergan Research in September, found 68% believe falling house prices would be good for Australia. Yet nearly as many (67%) are concerned that property values could fall further, rising to 75% among homeowners with a mortgage.
Those concerns come as house prices fall for a sixth month in a row, with national values 5.2% below their March 2026 peak, according to Cotality. The falls have been sharpest at the top end, with upper-quartile values in Sydney and Melbourne now more than 10% below their peaks.
A generational divide
Support for lower prices was strongest among younger Australians, with 78% of Gen Z agreeing they would be good for the country, compared with 69% of Millennials, 67% of Gen X, and 58% of Baby Boomers.
Even homeowners largely agreed, with 62% backing lower prices for the country as a whole.
Westpac chief executive, consumer, Carolyn McCann (pictured) said the results reflect how complex the housing debate has become.
“For many Australians, their home can be their biggest financial asset, so concern about falling values is understandable,” she said.
She added that Westpac’s economists expect a recovery. “While prices have fallen, our economists expect national property prices to rise by 3 per cent in 2027,” McCann said.
Ownership seen as out of reach
The findings highlight broader frustration with access to the market. Four in five Australians (82%) say homeownership is completely out of reach for the average person. A separate Westpac survey, conducted in May 2026, found 65% of first-home buyers believe they will never be able to buy without an inheritance.
When asked what would improve access, respondents pointed to more affordable housing in established suburbs (52%), lower stamp duty and other purchasing costs (48%), higher incomes and wage growth (39%), and better transport links to outer suburbs and regional areas (31%).
“Housing affordability is about more than house prices,” McCann said.
For brokers, the findings point to a market where clients may hold conflicting views: wanting easier entry for buyers, while protecting the value of the homes they already own.
