If it is purely a correction due to primarily due inflation then it won't matter and the economy should remain fairly stable as it will take a decade to play out. However if we are talking a relatively fast 40% correction then that would likely be absolute carnage in the rest of the Australian economy as the triggers will likely be interest rates greater than 10% and/or high unemployment.
With respect to the second comment I was not referring to who is likely to hold because of investment value (and as an investor that will be very much determined by your intended investment hold time-frame) - I am talking about who is more likely to be forced out and far more home owners are likely to be forced out if the unemployment rate significantly increases.
