Economist WARNS: ‘The Floor Has Come Out Of The Housing Market’ (Karl Stefanovic)

Australia’s economy is heading for a major reckoning – according to economist Leith Van Onselen.

This week on Karl Weekly, Karl Stefanovic and Leith Van Onselen unpack Labor’s controversial tax changes, the housing market slowdown, rising interest rates, unemployment fears and the growing pressure on small business owners and startups.

Will Australia face its biggest housing correction in 40 years? Why are investors suddenly borrowing less? Are entrepreneurs and startup founders being punished? And has Australia become what Leith calls a ‘sinkhole economy’?

Leith warns the housing market floor has ‘come out’, says these tax changes are ‘a tax on entrepreneurship’ and argues Australia is now in ‘managed decline’ unless major reforms happen.

From housing affordability and migration to productivity, taxation and the future of the Australian economy, this is one of the starkest economic warnings yet on Karl Weekly.



They talk about a drop in the housing market, with the new tax changes, but there is still the issue of mass migration keeping prices high. Perhaps the only way prices will come down, to a realistic level, is to end mass migration. 

[Posted at the SpookyWeather2 blog, May 28, 2026.]