Depends how big their mortgage is, they may have to downsize,...

Depends how big their mortgage is, they may have to downsize, restructure their loans and with a smaller mortgage payment, it may actually free up their income to be able to invest in stocks. Right now, with record house prices and high interest rates, most people are sending the majority of their pay-packets to service the mortgage. Also, a housing crash may enable many renters to buy their own home, as people with investment properties, will be forced to sell off a lot of their portfolio. IMO this will create less pressure in the rental market, with more supply available and less renters, it should drive down rental prices. This will also free up finances for renters who can then also afford to invest money in the share market. A housing crash soon is a positive imo, it will restructure the entire Australian economy and improve things across the board. Right now, it has just got way too expensive and it is not the country it used to be. Only the elites with huge property portfolios and massive equity, watching their portfolios grow and selling at the peaks, are the only ones benefitting right now to be fair. The average homeowning family are in struggle street right now.