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Criticizing the uneven cooling that worsens affordability for first-home buyers

Published July 26, 2026 at 9:02 PM UTC

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While national house prices are cooling, the picture is far from rosy for those trying to enter the market. Prices remain at historic highs in most capital cities, particularly in Sydney and Melbourne, where the median property still costs over $1 million. The cooling is not uniform: Perth's $51,000 surge in three months shows that speculative demand continues in some regions. Meanwhile, higher interest rates mean mortgage repayments have soared, making it even harder for first-home buyers to qualify for loans. The cooling does little to address the underlying supply shortage, which keeps prices elevated. Critics argue that the RBA's blunt tool – rate hikes – hurts aspiring homeowners without fixing the fundamental lack of housing. Renters are also squeezed, as landlords pass on higher mortgage costs. The real solution, they say, is to boost housing supply through zoning reforms, faster approvals, and government investment. Until that happens, any cooling will leave affordability out of reach for many Australians.