Key takeaways
Despite predictions of a dramatic downturn due to rising interest rates, the housing market remained resilient, driven by strong population growth, low unemployment, and limited supply.
While high rates stretched budgets, savvy buyers adapted, leveraging equity and making strategic moves rather than exiting the market.
Simplistic solutions like mass construction ignored deeper structural issues, such as the need for liveable communities with proper infrastructure.
Domestic factors like population growth and limited supply had a greater influence on house prices than foreign investment.
A surge in immigration and dwindling investor participation exacerbated the rental crisis, defying expectations tied to new housing supply.
Record-breaking migration drove up demand for both rental and owner-occupied properties, a factor underestimated by many commentators.
Post-pandemic trends reversed as people returned to cities for better work opportunities and amenities.
Adaptable strategies like rentvesting and government incentives allowed many first-home buyers to enter the market despite affordability challenges.
Labour shortages, rising costs, and builder insolvencies kept the industry from recovering quickly, worsening housing supply issues.
Gloomy economic predictions didn’t materialize. Strong employment, government spending, and robust consumer demand supported economic stability.
Every year the media bombards us with headlines about the property market and the economy – some sensational, others overly optimistic or downright terrifying.
As property investors and homeowners, it’s easy to get swept up in the noise.
But now that we’re into a new year let’s look back and unpack some of the myths, exaggerations and misconceptions the media fed us last year.
Here are 10 things the media got wrong about the housing markets and our economy in 2024:
1. “House prices will crash in 2024”
We’ve heard this one so often it’s practically a broken record.
At the beginning of last year, several commentators predicted that rising interest rates and economic uncertainty would cause property prices to plummet.
But instead, our housing markets showed remarkable resilience.
Sure, there were challenges and not all housing markets performed strongly last year (I’m looking at new Melbourne!)
However, strong population growth, low unemployment levels, tight supply and a struggling construction sector meant supply could not keep up with demand.
2.“Interest rate hikes will kill the market”
It’s true that interest rates remaining high throughout 2024 stretched many household budgets and limited borrowing capacity for buyers, but they didn’t “kill” the property market.
Savvy buyers adjusted their budgets, and investors continued to see opportunities in the long-term potential of property.
In fact, many Australians had built up substantial equity in their homes and these buyers with large deposits were using their equity to upsize or right size or lend to their children and grandchildren.
3. “The housing crisis will be solved by building more homes”
A simplistic solution regularly pushed by media outlets last year was the idea that simply building more homes would solve the housing affordability and supply crisis.
The federal government decided we should build 1.2 more dwellings in the next five years, commencing in July 2024, but that’s not going to happen, and the suggested solution is simplistic.
But that approach doesn’t address the deeper structural issues of our housing market.
Many of the new apartments being built are in high-rise towers in inner-city and near-city locations, far from the liveable neighbourhoods that many Australians desire.
Building more apartments is only one piece of the puzzle.
We also need to consider the surrounding infrastructure and amenities to create communities, not just boxes for people to live in.
4.“Foreign buyers are driving up prices”
While foreign investment in Australian property often makes headlines, the reality is that it plays a minor role in price dynamics.
Contrary to popular belief, the “Foreign Acquisitions and Takeovers Act 1975” strictly limits foreign ownership of established homes, requiring approval from the Australian Treasurer.
In 2024, most price growth was driven by domestic factors like population growth and tight supply.
Foreign buyer activity, although present, was far from the main driver of rising house prices.
5. “Rents will stabilize as new supply comes online”
The rental crisis was a hot topic in 2024, and the media often suggested that a new housing supply would alleviate it.
Yet, rents continued to rise sharply across Australia due to the imbalance between population growth and available rental stock.
Immigration, high interest rates, and investors leaving the market due to rising costs or increasing government interference compounded the issue.
6. “Population growth won’t affect the market much”
Some commentators underestimated the impact of record-breaking population growth.
With net overseas migration exceeding expectations, demand for housing, both rental and owner-occupied, skyrocketed.
The media often failed to connect the dots between immigration policies and the housing shortage.
7. “Regional markets will continue to boom”
During the pandemic, regional markets flourished as people sought lifestyle changes and work-from-home flexibility.
But in 2024, the tide turned.
While some regional areas held steady, others saw growth stall as people returned to cities for work, amenities, and better infrastructure.
The “regional boom” narrative missed the shifting demographic trends.
8. “First home buyers will be priced out completely”
While affordability challenges were real, the media underestimated the resilience and adaptability of first-home buyers.
Despite obstacles, many first-home buyers managed to enter the market.
Many leveraged government incentives, shifted their focus to more affordable areas or embraced the idea of “rentvesting”, choosing to rent where they wanted to live and buy an investment property where they could afford it.
There were around 540,000 property transactions in Australia in 2025, and around 20% of these were to first-home buyers.
9. “The construction industry will rebound quickly”
The construction industry faced significant challenges in 2024, including labour shortages, rising costs, and insolvencies among builders.
Yet, some outlets optimistically predicted a quick rebound.
The reality?
The sector struggled to keep pace with demand, contributing to housing supply bottlenecks.
10. “The economy is on the brink of recession”
Throughout the year there were plenty of gloomy predictions about Australia heading for a recession.
While economic growth did slow, strong employment figures, government spending, and robust consumer demand kept the economy afloat.
Australia once again proved its ability to weather economic storms.
Stay wary of headlines
If 2024 taught us anything, it’s that the property market and the economy are complex beasts, and sensationalist headlines rarely capture the full story.
As an investor, homeowner, or someone aspiring to enter the market, it’s crucial to dig deeper, seek expert advice, and focus on long-term trends rather than short-term noise.
The media often oversimplifies or exaggerates for clicks, but the property market isn’t just numbers on a chart—it’s about people, policy, and planning.
By staying informed and cutting through the noise, you’ll be better positioned to make smart decisions in 2025 and beyond.
What myths did you hear in 2024 that didn’t come true?
Let me know in the comments, I’d love to hear your perspective.
2 Comments
This is such a comprehensive and informative guide! I appreciate how you’ve debunked the top 10 misconceptions with data-backed evidence. It’s so important for readers to have a clear understanding of the housing market and economy, especially as we approach 2024.
I completely agree with your point about the influence of government policies on the housing market. It’s crucial for buyers and sellers to stay informed about any changes that might impact their investments. Can you elaborate on how we can proactively stay updated on these policies and their potential effects?
This comprehensive guide is a must-read for anyone trying to navigate the confusing landscape of the 2024 housing market. The author does an excellent job of breaking down the top misconceptions perpetuated by the media, giving readers a clear and accurate understanding of what to expect in the coming years. Whether you’re a potential homebuyer, investor, or simply curious about the state of the economy, this article is a valuable resource that will help you make informed decisions.