The One Thing That Really Drives Property Prices (And Why Most Commentators Miss It)

If you listen to the media, you’d think property prices are driven by interest rates, immigration numbers, and whatever the RBA does next month. 

But when you strip away the noise and look at what actually moves prices over the medium term, there’s one factor that quietly dominates everything else. 

And it’s- jobs. 

And not just how many jobs, but what type of jobs, where they are located, and who they attract. 

In this episode of Demographics Decoded, Simon Kuestenmacher and I discuss the critical role of jobs in driving property markets.  

We explore the nuances of local economies, the impact of demographic shifts, and the future of employment in the context of AI and automation. 

We also analyse Melbourne’s unique property market dynamics as well as the importance of understanding the quality of jobs in relation to property investment decisions. 

Takeaways   

• Jobs are the primary driver of property markets. 

• Population growth does not always lead to capital growth. 

• The type of jobs available impacts housing demand significantly. 

• Local economies are crucial for property value growth. 

• Melbourne’s property market is affected by the type of housing being built. 

• Sentiment in property markets often lags behind fundamentals. 

• Investors should focus on the quality of jobs, not just quantity. 

• AI will change the nature of work but proximity to job centers remains important. 

• Defense spending is a key area for future economic growth. 

• Understanding long-term economic trends is essential for property investment. 

Join Michael and Simon at Wealth Retreat 2026, where Australia’s most ambitious investors and businesspeople gather to think bigger, invest smarter, and build intergenerational wealth. 

MAY 30th – JUNE 3rd 2026 – find out more here. 

About Simon Kuestenmacher 

Simon Kuestenmacher  is co-founder and Director – The Demographics Group 

Simon is a prolific media commentator on demographic and data matters and a columnist for The New Daily and The Australian newspapers.    

He ranks as one of the world’s Top 10 influencers in data visualisation. If you can’t get enough of the kind of data that explains how the world works, make sure to follow Simon on Linked In or X (formerly Twitter) or any of his other social channels. 

Click here for a media enquiry or if you would like to book Simon Kuestenmacher for a speaking engagement. His presentations and quirky observations are enjoyed by audiences from the financial services, property, government, education, technology, retail and professional services industries, among others. 

About Michael Yardney 

Michael Yardney – founder Metropole Property Strategists has been voted one of Australia’s 50 most influential Thought Leaders. 

While he is best known as a property expert, Michael is also Australia’s leading expert in the psychology of success and wealth creation. 

Michael is a #1 best selling author of 9 books and frequently challenges traditional finance advice with innovative ideas on property investment, personal finance and wealth creation. 

Are you interested in property investment – let the team at Metropole build you a Strategic Property Plan to help give you clarity, direction and wealth – producing results. 

Also, please subscribe to my other podcast, Property Investment, Success and Money |The Michael Yardney Podcast. Just look for it wherever you are listening to this podcast and subscribe so each week we can unveil the trends shaping your future. Or click here: