Friday, 17 February 2025 - As Australians await the long-anticipated interest rate announcement next Tuesday, new research from Compare Club reveals a sharp decline in confidence in the RBA. The findings show that over 52% of respondents now believe they will never be able to purchase a home, underscoring growing concerns among future buyers and voters.
This comes at a critical time, as Compare Club's research highlights that the housing crisis is a top concern for voters. The survey shows that 4 in 5 Australians are worried about housing affordability. Additionally, 63% of those unhappy with housing policy also express distrust in the government's economic management.
"The housing affordability crisis has become a key election issue, particularly for younger voters and renters," said Browne. “Australians are now not only very concerned about housing affordability but they are now also questioning the RBA, with many respondents reporting that they no longer have any confidence in its ability to control inflation."
The impact of housing costs on Australians’ ability to save is significant, with close to 67% agreeing the cost of housing is making it extremely difficult to save money.
Key findings from the research include:
RBA Confidence is currently low: 40.52% distrust the RBA’s ability to manage inflation, with younger Australians (18-24) least confident (9.37%).
Low RBA Confidence is stopping people from buying homes: Over 52% of those who have no confidence in the RBAs ability to manage inflation think they will never be able to afford a home.
Despite the RBA and the government operating as separate entities, the report reveals that confidence in the RBA significantly influences public perception of government performance in various areas. For example:
52% of those with confidence in the RBA express job market optimism, compared to just 26% of those without it.
Confidence in the RBA also correlates with attitudes toward housing policy. Those who trust the RBA are 12 percentage points more likely to believe the government is doing enough to address housing affordability.
"Our research has shown that respondents who trust the RBA are more likely to support the opposition. If the RBA successfully lowers rates, reduces inflation, and eases mortgage repayments, this may well see a shift in voting intentions at the next election," said Kate Browne, Head of Research at Compare Club.
Sources
*Nationally representative election survey of 1000 Australians
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For media enquiries:
Alice Cooke
Media + Capital Partners
0484 747 472
alice.cooke@mcpartners.com.au
About Compare Club
Compare Club is one of Australia’s fastest-growing personal finance marketplaces; it helps Australians save money by navigating complicated and important financial decisions. Compare Club’s panel of experts offers bespoke advice to over 3.6 Million members making 1 Million product enquiries per year on key financial decisions, including health insurance, electricity & gas bills, and personal, car, and home loans. Compare Club is locally owned and employs 350 passionate staff across Sydney, Melbourne, and Brisbane, and another 50 staff in Indonesia and the Philippines.
