{"id":1959,"date":"2022-02-24T08:04:15","date_gmt":"2022-02-24T08:04:15","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/is-this-the-most-significant-factor-driving-our-property-markets\/"},"modified":"2022-02-24T08:04:15","modified_gmt":"2022-02-24T08:04:15","slug":"is-this-the-most-significant-factor-driving-our-property-markets","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/is-this-the-most-significant-factor-driving-our-property-markets\/","title":{"rendered":"Is this the most significant factor driving our property markets?"},"content":{"rendered":"

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Want to know what that magic ingredient is that propels property markets forward?<\/strong><\/p>\n

\"OwnerThe little secret behind whopping price growth?<\/p>\n

It\u2019s not the economy, even though that\u2019s important.<\/p>\n

It\u2019s not supply and demand, even though that plays a role.<\/p>\n

It\u2019s not infrastructure spending, availability of finance, or population growth either.<\/p>\n

Although all of these things are important and undoubtedly impact our real estate markets, the truth is there is one major factor that drives property values more than anything else.<\/p>\n

And that factor is\u2026homeowners or as we sometimes call them \u2013 Owner Occupiers.<\/p>\n

While investors look at all types of drivers of capital growth, they often tend to forget that it\u2019s owner-occupiers who primarily drive our property markets forward.<\/p>\n

Fact is: they own close to 70 percent of all the properties in Australia and therefore dominate our market and without them, it simply falls over.<\/p>\n

Two-thirds of the market are homeowners<\/h2>\n

So it\u2019s interesting that while owner-occupiers are one of the most significant influences on property, they are commonly overlooked.<\/p>\n

Think about it\u2026with almost 70% of all homes in Australia owned by owner-occupiers, this underpins the steady long-term growth of property values. <\/p>\n

On the other hand, investors, who comprise just 30% of the market, create our property booms (often driven by Fear OF Missing Out or greed) and our property downturns (when they exit the market by sitting on the sidelines or selling up) creating volatility.<\/p>\n

Here\u2019s a relatively current snapshot of the national property market according to the Australian Bureau of Statistics (ABS) and CoreLogic:<\/p>\n