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Interest Rates, Inflation and the Future of Australia’s Property Market


By Coposit

13 May 2026 · 2 min read

Why Property Buyers Are Feeling Pressure

In this Property Now episode, property analyst Cameron Kusher breaks down inflation, rising interest rates and the growing pressure on Australian households. The conversation explores how cost of living pressures are reshaping the property market, especially for first home buyers and off the plan buyers.

Inflation Is Changing the Property Landscape

The episode explains how everyday costs continue rising across:

  • Petrol
  • Groceries
  • Electricity
  • Construction materials

Kusher explains that inflation is no longer just driven by post-pandemic stimulus. Supply shortages and global instability are now major factors.

What Higher Interest Rates Mean for Buyers

Interest rates are expected to remain higher for longer.

The discussion highlights:

  • Reduced borrowing power
  • Slower property market activity
  • Pressure on mortgage holders
  • Ongoing rental shortages

Despite this, housing demand remains strong due to population growth and limited housing supply.

Off the Plan Property and New Housing Supply

The episode also explores why Australia urgently needs more new housing.

Challenges include:

  • Rising construction costs
  • Difficult project feasibility
  • Lower buyer confidence
  • Slower development approvals

At the same time, strong migration and rental demand continue increasing pressure across the housing market.

Coposit and Flexible Property Buying

Coposit helps eligible buyers secure off the plan property with a smaller upfront amount instead of needing a large traditional deposit.

For many first home buyers, this creates a more flexible pathway into the property market while saving during construction.

Australian Property Market Outlook

While market conditions remain uncertain, long-term housing shortages and population growth are expected to continue shaping Australia’s property market for years ahead.


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