More than one in three Australians has given up on buying or investing in property, a new report has found.
Released this week before the Reserve Bank held interest rates, the survey from market researchers Vibrant Insights polled 4000 Australians aged 14 to 60-plus, to track health, housing and financial sentiment from 2024 to 2026.
According to the report, 35 per cent of respondents were “quitters” who said they either could not afford or had chosen not to buy a first house or investment property.
That group has grown from 25 per cent in 2024 and 30 per cent last year.
Of the “quitters”, 70 per cent were already homeowners who had given up on the thought of an investment property, and had chosen put their money elsewhere.
Changes to capital gains taxes have also weighed on how people intend to invest in housing.
A cohort the survey identifies as people seeking to invest in housing by other means – living in a rental but leasing out their own home – or sharemarket and crypto returns, is shrinking on the back of tax changes to the federal budget.
People who think they can save their way to a mortgage has fallen to its lowest on record – down from 38 per cent two years ago to 24 per cent now.
The survey found 19 per cent of people felt negatively about their life overall in 2025, which has increased to 30 per cent this year.
Across the survey categories of friendships, relationships, hobbies, work, finances, and thoughts on the environment, the biggest slide was a dip in how much effort people put into their hobbies, followed closely by an additional three per cent (down to 34 per cent) feeling negatively about their work.
More than one-quarter of 30-49 year olds say they want more kids but have changed their minds, with a majority blaming housing costs.
The three-year study was released Tuesday morning, shortly before the RBA held interest rates at 4.35 per cent.
Governor Michelle Bullock cautioned inflation remained “too high” and the central bank may have to hike again this year for what would be the fourth time.
While there has been anecdotal evidence of property investors looking elsewhere away from housing since sweeping changes to capital gains taxes were announced, property prices in Sydney are forecast to fall 3 per cent this year, and Melbourne is expected to see a four per cent dip.
The projections are from REA Group, and are chalked up to first homebuyers having a tougher time getting a mortgage with the high current interest rates, alongside general unaffordability.
REA group senior economist Angus Moore said the market was clearly cooling due to three consecutive rate hikes.