The Real Driver of Property Prices (It’s Not Interest Rates) with Simon Kuestenmacher
Jun 3, 2026
If you’ve been following the headlines, you’d be forgiven for thinking property markets rise and fall on the back of interest rates, government policy, or the latest migration numbers.
But when you step back and look at what really drives long-term property performance, a different story starts to emerge.
In fact, the biggest driver of property values isn’t what most commentators focus on at all.
In today's show I speak with leading demographer Simon Kuestenmacher about the real drivers of property markets.
We explore why employment, not just population growth, is crucial for property value growth.
Simon and I discuss how job quality and security influence housing demand and investment.
We analyse the impact of demographic trends and local economies on property strategies.
Join us as we provide insights to help you make informed investment decisions.
Takeaways
• Employment growth drives property values more than population increases.
• Local economies and job security boost housing demand and confidence.
• Dual-income households significantly impact property prices and market dynamics.
• Infrastructure linked to jobs supports sustainable economic growth.
• Industry diversity strengthens local economies and property markets.
• High-income jobs in city centres attract property investment.
• AI and hybrid work models reshape property location preferences.
• Defense spending boosts property markets in specific regions.
• Long-term planning is crucial for understanding job quality and local economies.
• Skilled, high-income households drive property market growth.
Links and Resources:
Answer this week’s trivia question here - https://www.propertytrivia.com.au/
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Simon Kuestenmacher: Australia’s leading demographer and partner in the Demographics Group
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About The Michael Yardney Podcast | Property Investment And Wealth Creation Australia
The Australian property market doesn’t move in isolation - it’s shaped by demographics, economic forces and long-term structural trends.
The Michael Yardney Podcast dives into:
• Australian economic outlook
• Demographic trends shaping housing demand
• Population growth and migration impacts
• Housing affordability debates
• Interest rates and inflation
• Supply shortages and construction cycles
• Government policy and property markets
• Future trends in Australian real estate
• Strategic property investment planning
If you want to understand what’s really driving property prices in Melbourne, Sydney, Brisbane and around Australia, and how to position your portfolio for the future, this podcast delivers data-driven insights and practical strategy.
Explore more at:
https://propertyupdate.com.au
https://metropole.com.au