What’s the relationship between house prices and divorce, and why is it important? Most people would assume that higher house prices would cause more unhappy spouses to delay the decision to leave, due to financial constraints. It’s harder to contemplate the gruelling and expensive process of separation and divorce if you know that prices are rising – and that by the time you find a new abode, it will be much costlier.

But it’s not that simple.

House prices have risen about 38 per cent in the past five years, and divorce is at its lowest level since the introduction of no-fault divorce in 1976.Credit: Monique Westermann

Our research looked at the relationship between house prices, which have risen about 38 per cent in the past five years, and divorce, which is at its lowest level since the introduction of no-fault divorce in 1976.

Australian households are experiencing a cost-of-living crisis at present. The 1990s recession was also a period of significant financial hardship for households but, in contrast, divorces rose over that time.

What has changed? Our research looked at general perceptions of the housing market; our findings showed a difference between housing price increases that were higher or lower than expected.

For home owners, lower-than-anticipated housing price growth significantly increases the likelihood of separation. In this case, the cost of lower house prices is more important than the benefit of lower house prices. When house prices don’t grow as quickly as anticipated, couples can separate knowing they will not face as large a........

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