When people talk about Australia’s housing affordability issues, property investors often get the blame.

But the latest data suggests there’s a bigger picture.

According to the Australian Taxation Office (ATO), around 71% of property investors own just one investment property, while 19% own two. That means almost 9 in 10 investors are everyday Australians, not large-scale property owners, like the media and the government are making them out to be.

At the same time, concerns are growing that higher costs and changing property policies could see more investors leave the market. If that is to happen, it could mean fewer rental properties available at a time when we are already running short on rentals.

The reality is that Australia’s housing problems don’t come down to one specific group of Australians.

Population growth, limited housing supply, construction costs, planning delays, and investor confidence all play a role in where the market is today.

The positive is that for first home buyers, fewer investors competing for established homes could create more opportunities to purchase.

For renters, however, a reduction in investment properties could place even more pressure on an already tight rental market if enough new homes aren’t being built.

The biggest takeaway?

Rather than pointing fingers at one group, the focus needs to be on increasing housing supply to meet demand. More homes would mean more opportunities for buyers, more choice for renters, and a healthier property market for everyone.