Why Rising Unemployment Could Signal Opportunity for Property Investors
When the latest unemployment data dropped, a lot of people panicked but smart investors saw an opportunity.
According to the ABS, Australia’s unemployment rate has climbed to 4.5%, the highest level in around four years. That might sound worrying on the surface, but when you dig a little deeper, it could actually be good news for property investors.
The Problem: The Market’s Slowing, and People Are Hesitating
A rising unemployment rate usually means fewer people are working, spending, and borrowing. As confidence dips, many potential buyers hit pause waiting to “see what happens next.”
The problem with that? Markets don’t wait.
While most people sit on the sidelines, opportunities quietly build. Supply remains low, and demand is only being delayed — not erased. The result? Once confidence returns, competition floods back, and prices rise fast.
The Solution: Understanding the Bigger Picture
When unemployment goes up, it often pushes the Reserve Bank of Australia (RBA) to step in and support the economy.
How? By cutting interest rates.
Rate cuts mean lower borrowing costs, easier access to finance, and ultimately, more demand in the housing market. This is the start of what’s known as the “recovery phase” of the property cycle and those who position themselves early are usually the ones who benefit most.
If you buy before rate cuts hit, you’re purchasing in a quieter market, likely negotiating better deals and setting yourself up to enjoy capital growth once buyer activity surges again.
What Investors Should Do Now
If you’re serious about growing wealth through property, this is the time to start getting your finances and strategy in order not six months from now when everyone else jumps back in.
Here’s what you can do:
Review your borrowing capacity — even if you’re not buying tomorrow, know your numbers now.
Assess your equity — your current home or investment could help fund your next purchase without saving another cent.
Start researching strong-performing markets — focus on areas with limited supply, high rental demand, and strong local economies.
Work with professionals — having the right buyer’s advocate, broker, and conveyancer makes the process seamless and ensures you’re buying smart, not emotionally.
The Bottom Line
While the headlines might sound negative, this kind of market shift is exactly what experienced investors look for.
When others hesitate, they prepare. When the rate cuts arrive, they act — and that’s where the real wealth is built.
At Baker Advocates, we help everyday families take advantage of these market cycles by identifying high-growth opportunities before the crowd catches on.
If you’re ready to position yourself ahead of the next property upswing, click here to book your free discovery call.