Australia’s Housing Incentives Are Backfiring

Australian property prices are often treated as a national scoreboard—up means success, down means failure.But what if that assumption is wrong? In this episode, we interrogate one of the most polarising ideas in housing today: that Australia’s obsession with ever-rising property prices is doing more harm than good.Joining Veronica and Chris is Adam Schwab, founder of Luxury Escapes and a sharp, outspoken commentator on economics, inflation, and corporate behaviour. Coming from outside the property industry, Adam brings a contrarian lens to housing—questioning whether property has become an unproductive asset, how easy credit and government incentives have distorted prices, and why policies like 5% deposit schemes may be helping vendors more than buyers.The conversation digs deep into rental yields versus capital growth, the role of the RBA in inflating asset prices, and why high house prices don’t actually benefit most owner-occupiers. Adam challenges the idea that owning property equals success, arguing that Australia’s fixation on housing is crowding out productive investment, innovation, and long-term economic resilience.This is a robust, sometimes uncomfortable discussion about incentives, risk, and who really wins when property prices keep climbing. If you care about affordability, fairness, and the future of Australia’s economy — not just short-term price movements—this episode will force you to rethink what “good” housing policy actually looks like.Episode Highlights00:00 — Introduction to the Episode and Guest00:56 — Adam Schwab's Contrarian Views on Property01:37 — Debating Property Prices and Investment02:49 — Renting vs. Buying: A Financial Analysis05:43 — The Impact of High Property Prices on Society19:02 — Monetary Policy and Housing Market26:50 — Reverse Mortgages and Their Implications27:32 — The 40-50 Year Loan Debate28:31 — Government Policies and Housing Market29:09 — Economic Logic vs. Political Motives29:33 — Risks of New Property Incentives31:22 — Banking System and Housing Bubble33:41 — Immigration and Housing Affordability35:28 — Leveraging and Property Investment42:20 — Comparing Property to Other Investments47:53 — Global Talent and Property Prices49:51 — Concluding Thoughts on Property MarketAbout the GuestAdam Schwab is the co-founder of Luxury Escapes, one of Australia’s most successful global travel businesses, which he helped scale into a billion-dollar brand. Beyond entrepreneurship, Adam has built a parallel career as a respected financial journalist and commentator, known for his sharp critiques of corporate behaviour, economic policy, and market incentives.He is also the co-host of The Contrarians podcast, where he regularly challenges mainstream narratives on markets, inflation, and government intervention. Unafraid to question sacred cows — including Australian property — Adam brings an outsider’s perspective grounded in economic fundamentals rather than industry orthodoxy.In this episode, Adam applies that contrarian mindset to housing, offering candid insights into why Australia’s property system rewards asset inflation over productivity, how easy credit fuels bubbles, and why policy settings may be entrenching inequality rather than solving it.Connect with AdamAdam’s LinkedInAdam’s InstagramLuxury Escape's WebsiteLuxury Escape’s FacebookLuxury Escape’s InstagramLuxury Escape’s YouTubeLuxury Escape’s TikTokResourcesVisit our website: https://www.theelephantintheroom.com.auIf you have any questions or would like to be featured on our show, contact us at:The Elephant in the Room Property Podcast - [e-mail] for a Sydney Buyers Agent? https://www.gooddeeds.com.auWork with Veronica: https://www.veronicamorgan.com.auLooking for a Mortgage Broker? alcove.com.auWork with Chris: [e-mail] the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word, and join us for more insightful discussions in real estate. Your journey starts now!Subscribe on YouTube: https://www.youtube.com/@theelephantintheroom-podcastSubscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/the-elephant-in-the-room-property-podcast/id1384822719Subscribe on Spotify: https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXAdam0?si=26cde394fa854765If you enjoyed today’s podcast, don’t forget to subscribe, rate, and share the show! There’s more to come, so we hope to have you along with us on this journey!See you on the inside,Veronica & Chris