(905) 441 0770 allen@allenehlert.com

Australia’s Warning to Canada

by | May 8, 2025

Imagine trying to find a new home, only to be met with a haunted house in desperate need of renovation. That’s just one of the many challenges facing buyers in Australia’s housing market. With soaring prices, limited supply, and fierce competition, the housing crisis in Australia serves as a cautionary tale for the rest of the world.

Sydney’s Booming Property Market

Sydney, known for its beautiful beaches and easy access to the city and airports, is facing a housing market boom. Ranked as the second least affordable housing market among 94 major cities worldwide, Sydney’s property prices have skyrocketed due to high demand and limited supply. The city’s growing population is driving up prices, making it increasingly difficult for first-time buyers, especially those with low incomes, to find an affordable home.

The Consequences of the Housing Crunch

The housing crunch in Australia has far-reaching consequences. Buyers struggle to find suitable homes, sellers enjoy inflated prices, construction firms face increased costs, and the government grapples with finding solutions. The tight supply of housing stock and low unemployment rate contribute to the high prices. Rental markets are also severely impacted, with incredibly low vacancy rates and soaring rents, particularly affecting the younger generation and lower-income individuals.

Australia has severe real estate challenges
Australia has severe real estate challenges

A Personal Story of Struggle

The housing crisis in Australia hits close to home for many individuals, like Harry and his mother living on the outskirts of Sydney. Rising costs and lack of affordable rental properties have forced them to move from house to house. They have experienced the hardships of eviction and endless searches for suitable rental homes. The competition is fierce, with many people attending inspections, making the process even more challenging for those in need.

The Hurdles in Building More Homes

While the pandemic has led to a building boom, it has also presented hurdles for construction firms. Increased costs for labor and building materials have made houses 30% more expensive to build than before the pandemic. This poses a significant obstacle to increasing the housing supply and easing the crunch. However, incentivizing social and affordable housing initiatives can help alleviate some of the challenges faced by the Australian housing market.

Australia’s housing crisis serves as a stark warning for the world. With skyrocketing prices, limited supply, and fierce competition, the dream of owning a home is becoming increasingly out of reach for many. It is crucial for governments and policymakers to take action and provide solutions that prioritize affordability and accessibility in the housing market.

Mortgage and Money Radio Logo
Allen Ehlert

Allen Ehlert

Allen Ehlert is a licensed mortgage agent. He has four university degrees, including two Masters degrees, and specializes in real estate finance, development, and investing. Allen Ehlert has decades of independent consulting experience for companies and governments, including the Ontario Real Estate Association, Deloitte, City of Toronto, Enbridge, and the Ministry of Finance.

Lenders’ View: Second Mortgages

Lenders’ View: Second Mortgages. Every lender views second mortgages through a completely different lens of risk, control and structure.

B Lenders Don't Pre-Approve

‘B’ Lenders Don’t Pre-Approve

Discover why Pre-Approval B Lenders offer a fresh start with alternative mortgage options for those with credit challenges in Canada.

Blacklisted Condo

Avoid Blacklisted Condos

A blacklisted condo is a condominium that certain mortgage lenders have categorized as high-risk and are unwilling to finance. Learn the reasons why a condo is blacklisted and what to do about it.

Accumulated Income Payments

Mortgage Term: Accumulated Income Payments

Discover the implications of accumulated income payments and how they indirectly related to mortgages.

Net Worth Program

What is a Net Worth Program?

Learn what a Net Worth Program is and how it assists individuals with substantial net worth to qualify for a mortgage.

RDSP Qualified Investment

Mortgage Term: RDSP Qualified Investment

Discover the implications of an RDSP qualified investment, how it can grow in a tax-deferred manner leading to building wealth and providing a secure home for a disabled Canadian.

Sources of Down Payment

Sources of Home Down Payment

Discover reliable sources for your home down payment in Canada. Learn about savings options, grants, and assistance programs to make homeownership a reality.

Refinanced Mortgages Uninsured

Why Refinanced Mortgages Are Always Uninsured

Discover why refinanced mortgages in Canada are always uninsured and the opportunities refinancing your mortgage provide you.

Recourse Loan

Mortgage Term: Recourse Loan

Discover what a recourse loan is, it’s key characteristics, and how it applies to mortgages, particularly in Ontario (as opposed to Alberta).

Protecting Information

Protecting Your Personal and Financial Information

Discover how Allen Ehlert protects your personal and financial information so you can be secure when applying for a mortgage knowing your information is safe and secure.