Falling property prices are creating difficulties for many Australians, including Alex Hogan and his partner, who are now questioning whether they can afford to have another child. The couple, unable to enter the competitive established housing market, decided to buy a block of land to build their own family home. However, rising construction costs and declining property values are making their dream more challenging. Hogan believes the government should continue working to solve the housing affordability crisis, warning that without ongoing efforts, deeper problems could return. Some homeowners, like Hogan, are willing to accept lower property valuations to help make housing more accessible for others, even though it may affect their own finances. Property prices across Australia have dropped by 3.6% from their peak this year, with sharper declines in cities like Sydney. Analysts predict further drops of more than 10% if higher interest rates and economic conditions remain in place. Some critics of the government have linked the market downturn to recent budget reforms introduced by the Labor party in May, which included changes to how new investors can use negative gearing—a tax strategy that allows deductions for investment property losses. While property prices have grown significantly in the long term—rising by 26% over three years—newer buyers are now more vulnerable to the current market weakness. Eibhlinn Cassidy, who purchased a Melbourne apartment two years ago, is ready to accept financial losses if it helps make housing more affordable for others. She recalls the stress of high rent costs and weak tenant protections, and prefers owning a home despite the risk of falling property values. KPMG economist Terry Rawnsley suggests that recent buyers may not need to refinance immediately and could wait for property prices to recover once the Reserve Bank of Australia starts cutting interest rates, expected around 2028. Changes in how property investors are taxed have led some to rethink their involvement in the housing market. Remy Coll, a business owner in Canberra, became an accidental landlord after the market downturn made it difficult to sell his home. He now faces higher mortgage repayments and does not want to contribute to the rental crisis, but he is forced to sell his property at a loss. Coll acknowledges the pain of the current situation but believes the government’s actions are necessary for long-term housing affordability.