The death of property has been greatly exaggerated

By the Editorial Team · Sunday, October 4, 2026

Debate persists over the viability of home ownership as fluctuating property markets and shifting investment trends challenge its appeal, especially among younger buyers facing high entry costs and attracted to high-return stocks. Economists warn that despite current uncertainties, property remains a valuable asset due to its fundamental housing utility and historical market recoveries, suggesting potential long-term benefits for investors who remain patient.

Debate continues over the future of home ownership amid fluctuating property markets and shifting investment trends. While some argue that purchasing property is no longer a viable financial decision due to uncertain price growth, others maintain that home ownership remains a relevant and valuable option.

Property markets, like other asset classes including shares, bonds, and cryptocurrencies, naturally experience periods of volatility. Economic experts caution against interpreting short-term declines as permanent shifts. The unpredictability of market cycles makes it difficult to determine when or if property values will rise again, even for seasoned economists.

A critical factor differentiating real estate from other investments is its intrinsic utility as a place of residence. Unlike stocks or cryptocurrencies, property serves a fundamental human need for shelter and does not entail rental payments to third parties. However, home ownership does come with costs such as mortgage repayments, maintenance, insurance, and potential risks like property damage.

Some of the skepticism toward property stems from younger individuals who have only experienced falling home prices in recent years, while witnessing rapid gains in technology stocks and AI-focused investments. This contrast fuels a psychological phenomenon known as “fear of missing out” (FOMO), where investors may feel pressured to prioritize emerging sectors with apparent rapid returns.

Alexandra Turcu, an economist at Kiwibank in her early 30s, identifies several behavioral biases influencing current investment choices. These include opportunity cost and loss aversion—the tendency to fear losses more than valuing equivalent gains—and herd mentality, where people align their decisions with perceived popular trends. Turcu notes this dynamic creates uncertainty over whether property prices have bottomed out, making prospective buyers hesitant, while high-performing stocks attract greater confidence.

Furthermore, the initial costs of entering the property market—such as large deposits and administrative expenses—pose barriers for many younger buyers. This financial hurdle intensifies comparisons between property investment and more accessible options like shares that can be purchased with minimal upfront capital.

Despite these short-term challenges, some economists caution that waiting to invest in property may carry long-term costs. Historical examples from market downturns in 1987, 2000, 2008, and early 2020 illustrate the cyclical nature of asset values and the risks of exiting markets prematurely.

In summary, while property ownership currently faces competition from other investment vehicles and psychological obstacles, it is not considered obsolete. Turcu emphasizes that although the housing market is subdued at present, property investing remains a viable strategy, potentially poised for recovery once current conditions stabilize.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.