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Australians face new housing era after budget shake-up
Australia's housing market is entering what economists describe as a generational transition following sweeping tax reforms unveiled in the Federal Budget, with forecasts pointing to weaker investor demand, slower house price growth and a significant shift in investment towards newly built dwellings. The changes, which include restrictions on negative gearing and reforms to capital gains tax concessions, represent the most substantial overhaul of housing investment incentives in decades and are expected to alter both the short-term trajectory and long-term structure of Australia's residential property market. According to recent analysis from Westpac, the combination of tax changes and rising interest rates is likely to trigger a 34% decline in new investor activity while reducing total housing turnover by around 20%. House price growth across the major capital cities is expected to stall during 2026, with Sydney and Melbourne forecast to record outright price declines.Credit: Dillon Hunt / PexelsEnd of an Era for Property InvestorsThe reforms seek to reduce the attractiveness of leveraged investment in existing residential property, a cornerstone of Australian wealth creation strategies for decades. Under the changes,
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Aus dwelling approvals fall more than expected in March
Australian dwelling approvals fell by a larger-than-expected 10.5% in March, with apartment approvals plunging after February’s growth. According to the Australian Bureau of Statistics (ABS), 17,300 dwellings were approved in March. Westpac had estimated a 10.0% decline. “The fall in total dwellings approved was driven by a 26.0 per cent drop in private dwellings excluding houses, following a 101.1 per cent rise in this series in February,” said ABS head of construction statistics Daniel Rossi. Apartment approvals fell 30.2% to 3,768. This is well below the 191.2% surge seen in February, and is 2.7% under the 12-month average. Approvals for apartments had also fallen by nearly half in January, which Rossi said at the time was partly due to seasonal factors. Private sector house approvals were up 0.9% to 10,194. This is the highest level since November 2021, Rossi said. The improvement in private sector house approvals was driven by New South Wales, which posted a 9.5% rise. Queensland also recorded a 7.2% increase, while Victoria, South Australia, and Western Australia declined. The value of total buildings approved dropped 19.4% to A$16.74 billion, down from February’s record high of $20.43 billion. Reside
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US housing market pressured by low inventory, Iran war
The United States housing market has been under pressure in recent months, beset by both low inventory and economic stress from the Iran war. Existing-home sales fell by 3.6% month-over-month in March, per the National Association of Realtors (NAR). Median housing prices also rose for a 33rd consecutive month. Even before the Iran war began, 75% of surveyed Americans said they were hesitant to make a real estate move due to economic concerns, The Harris Poll found. Since then, inventory has continued to lag, and mortgage rates have spiked. However, the turmoil may persist throughout 2026, as proposed legislative solutions have stalled and the fallout of the Iran war has continued.The inventory strainThe U.S. housing market is struggling with a lack of inventory amid flagging construction. In March, inventory was 1.36 million units, or 4.1 months of supply. The inventory-to-sales ratio has remained below historical norms in recent years, according to NAR, with roughly another 300,000-500,000 houses needed to restore normal conditions. U.S. housing supply growth has slowed drastically since the Global Financial Crisis, per Goldman Sachs analysts. “The rental and homeowner vacancy rates—the share of the total housing s
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US existing home sales drop in March; affordability falls
United States existing home sales fell by 3.6% in March amid low consumer confidence, limited inventory, and rising mortgage rates. Sales were down 1% year-over-year to 3.98 million during the month, according to the National Association of Realtors (NAR). “March home sales remained sluggish and below last year’s pace,” said NAR chief economist Lawrence Yun. “Lower consumer confidence and softer job growth continue to hold back buyers,” Yun said. Consumer confidence plummeted to a record low in early April, per the University of Michigan’s Surveys of Consumers. All regions posted a drop in existing home sales last month, with the Northeast seeing the largest percentage decrease at 8.5%. Median existing home sales prices also increased by 1.4% to a record US$408,800 in March. This was due to low inventory, according to NAR. “Inventory remains a major constraint on the market,” Yun said. “The inventory-to-sales ratio, or supply-to-demand ratio, is below historical norms. An additional 300,000 to 500,000 homes for sale would help bring the market closer to normal conditions and allow consumers to make purchase decisions without feeling rushed.” The average 30-year fixed mortgage rate climbed to 6.18% during the m
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Aus dwelling approvals surge in Feb, apartments rebound
Australian dwelling approvals rose 29.7% in February as approvals for apartments resurged. During February, 19,022 dwellings were approved, the Australian Bureau of Statistics (ABS) said today. “The rise in total dwellings approved was driven by a 101.2 per cent rise in private dwellings excluding houses,” said ABS head of construction statistics Daniel Rossi. “This follows a 25.0 per cent fall in private dwellings excluding houses in January and a 29.7 per cent fall in December.” Apartment approvals were up 191.2% to 5,398 dwellings during the month, a 29.8% rise year-over-year. Approvals for apartments had dropped by almost half in January, which Rossi credited to seasonal factors at the time. Townhouse approvals soared 73.8% to 2,981, also rebounding from a 38.7% drop in January. House approvals grew by 0.2% to 9,847, slowing from the 1.1% increase seen in January. This is a 6.1% rise year-over-year, however. New South Wales posted the largest growth in house approvals, up 13.7%, while Queensland recorded the largest drop at 13.4%. The value of total buildings approved rose 14.4% to A$20.43 billion during February, accelerating from January’s 7.8% increase. Approved residential buildings’ value climbed 3

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US house prices grow slightly in January
United States house prices edged up slightly on both a month-over-month and a yearly basis. According to the U.S. Federal Housing (FHFA) house price index, house prices rose 01% in January from the month prior and 1.6% year-over-year. The highest growth was in the East North Central division, where housing prices grew 4.4% year-over-year, and in the East South Central division, where they grew 1.8% every month. The S&P Cotality Case-Shiller National Home Price Index, which measures home prices across the country, rose 0.9% in the 12 months through January, compared with a 1.1% increase in December. This comes as the Senate passed the largest housing affordability bill in three decades. The bill would boost the supply of housing and ban investors from buying single-family homes. However, the legislation still faces an uphill battle in the House, where GOP leaders said the measure would need to be negotiated. U.S. mortgage applications have also plummeted to their lowest level since October last year amid the threat of higher oil prices and the 30-year fixed rate rising to 6.43%. New single-home sales in the U.S. also slumped 1.7% in December.
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US housing slump deepens as demand weakens
Sales of newly built homes in the United States fell sharply in January, dropping 17.6% from the previous month to a seasonally adjusted annual rate of 587,000 units, the lowest level since October 2022, according to data released by the U.S. Census Bureau. The decline, which was steeper than economists had anticipated, signals renewed weakness in the housing market after expectations late last year that activity would begin to stabilise. Sales were also down 11.3% compared with January 2025, with December figures revised lower. The figures, based on signed contracts rather than completed sales, reflect buyer activity during a period when borrowing costs were relatively lower. The average rate on a 30-year fixed mortgage ranged between 6.0 and 6.2% in January, according to Mortgage News Daily, but has since risen to about 6.36%, adding further pressure to affordability. Inventory levels increased as demand weakened. There were 476,000 new homes on the market in January, translating to a 9.7-month supply, up from eight months in December, Census Bureau data shows. A balanced market typically reflects about six months of supply, indicating a growing mismatch between supply and demand. Builders have responded
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US pending home sales rise but could be pushed down again
Contracts to purchase previously owned homes in the United States have grown unexpectedly in February amid a decline in mortgage rates, but the war in the Middle East could prevent further gains. Pending sales in February rose 1.8% from the previous month and 0.8% year-over-year, according to the National Association of Realtors Pending Home Sales Report. Economists polled by Reuters predicted that contracts would fall by 0.5% month-over-month. This comes as mortgage rates eased at the start of the year after President Donald Trump ordered government-backed mortgage firms Fannie Mae and Freddie Mac to expand purchases of mortgage-backed securities. However, mortgage rates have begun to climb in recent weeks due to the U.S.-Israel war with Iran, boosting oil prices and U.S. Treasury yields. Mortgage rates track the benchmark 10-year Treasury yield. “The slight gain in pending contracts appears to be driven by improved affordability conditions,” NAR chief economist Lawrence Yun said. “However, those conditions could reverse if higher oil prices lead to an uptick in mortgage rates.” Home sales rose in the Midwest, South, and West but declined in the Northeast month-over-month. They rose in the south and west
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US homebuilder sentiment up slightly in March: NAHB
United States homebuilder sentiment rose slightly in March, though affordability concerns persisted amid high construction costs and economic stress stemming from the U.S.’ war against Iran. Builder confidence in the market for single-family housing increased by one point to 38, per the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. Reuters-polled economists had forecast the index would remain unchanged at 37. “Affordability for buyers and builders remains a top concern,” said NAHB Chairman Bill Owens. “Many buyers remain on the fence waiting for lower interest rates and due to economic uncertainty. Builders are facing elevated land, labor and construction costs and nearly two-thirds continue to offer sales incentives in a bid to firm up the market.” Uncertainty from the U.S.’ war against Iran will also be headwinds in the market in the months ahead, including economic stress prompted by surging oil prices, said NAHB chief economist Robert Dietz. The survey found that 37% of builders cut prices in March, a slight increase from 36% in February. The average price reduction was unchanged at 6%. March’s indices come amid an uptick in mortgage rates. While the 30-year fixed mortgage rat