Are we really experiencing a housing shortage? It’s an intriguing question. A top economist has recently pointed out that Australia has a remarkable surplus of 13 million bedrooms, revealing opportunities for both homebuyers and investors alike. Understanding these trends helps you see how market conditions could affect your property decisions.

According to the latest census, this surplus consists of empty bedrooms, primarily in homes owned by older Australians who, understandably, hold on to their spacious family homes instead of downsizing. Michael Blythe, a prominent voice in economics and former chief economist at the Commonwealth Bank, now serving as the economist-in-residence at downsizer.com, emphasises that the housing crisis is often viewed solely as a supply issue. Still, the truth is, many homes are already built and just waiting for new occupants!

Blythe encourages us to shift our perspective on this matter. He believes understanding how to motivate homeowners to downsize can help ease market pressures, making homeowners feel valued and part of the solution.

He outlines a threefold approach to tackling this issue: First, we need developers to create downsizer-friendly properties that offer ample space and are located in ideal areas. Second, it’s essential to reduce bureaucratic hurdles to lower construction costs. Third, introducing incentives such as stamp duty exemptions for older homeowners can make a substantial difference. Knowing about these incentives can help you plan your next move more confidently.

In our market, the first quarter of 2026 saw buyers actively engaging, resulting in steady sales activity. Although supply is limited, this has helped our sellers meet their goals close to their expectations.

What’s interesting is the shift in buyer sentiment. Where there was once a strong urgency driven by the Fear Of Missing Out (FOMO), we’re now seeing a more measured approach with the Fear Of Overpaying (FOOP) taking centre stage. The media has played a role in shaping this change, especially with ongoing interest rate increases.  However, Buyers are moving forward with confidence. Many have adjusted to the fluctuating financial landscape and are comfortable navigating higher interest rates. To quote one real estate commentator, “You marry the house—you date the interest rate.” It’s a reminder that interest rates naturally ebb and flow throughout the journey of homeownership.

As for the rental market, it remains incredibly competitive, with multiple interested parties at viewings, particularly for properties priced at $700 per week or lower. Based on analysis from the Queensland Treasury and industry reports, Queensland has indeed experienced a significant reduction in private rental stock, with estimates suggesting approximately 55,000 fewer rental dwellings than expected, compared to long-term trends. This reduction, driven by investors selling properties amid rising costs and regulations, could impact your rental options or investment plans.

At Butler+Co, we’ve had the privilege of working with sellers, buyers and landlords in the first quarter, providing discreet, respectful, and professional services that help clients feel confident and supported throughout their property journey. Our recent sales, listings and rental properties are below.

Considering it might be time for you to upsize, downsize, invest, or embrace a more manageable lifestyle? We are dedicated to partnering with you to help you achieve your property aspirations. Let us help you find your dream home. If you’re interested in having a discreet conversation, don’t hesitate to reach out. We’re here for you.

Amanda Butler
Principal
0438 767 439
[email protected]

In our Client’s words

Having worked with Amanda a number of times before, we knew she was the agent to best help us sell our home promptly, efficiently and for the best price. Always happy to take our call, Amanda was responsive, proactive, considerate and kindly absorbed and mitigated the (self-induced) stresses we created by moving so rapidly and as the holidays approached. Her knowledge of the market is second-to-none and her professionalism and integrity allowed us to rest easy through this challenging time.

Michael, Clayfield

SALE

5/84 Charlton Street, Ascot
Offers Over $895,000

10 Derby Street, Hendra
Offers Over $2,650,000

25 Perry Street, Hamilton
For Sale

435 Ford Road, Priestdale
$8,800,000

138 North Pass, Tangalooma
Offers over $650,000

6 Trochus Place, Tangalooma
Offers over $1,075,000

SOLD

68 Barlow Street, Clayfield

 

Clayfield

      • 2 bed, 1 bath, 1 car
      • Top floor unit with views of Moreton Island

LEASE

12 Ascot Street, Ascot

4c/11 Hillside Crescent, Hamilton 

Thinking of selling, leasing, investing or buying?

Let us help you make your next move.

We’d love to catch up with you to discuss all your real estate needs.

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