Alan Kohler has blamed smartphones for Australia’s shrinking birth rate, warning it could spell major economic trouble. 

The veteran ABC economic analyst sounded the alarm, revealing the rates had fallen in the US, UK and Australia, with the figure now at just 1.5 births per woman.

The statistic falls well below the replacement rate of 2.1.

Kohler warned there would be significant consequences for the economy, affecting workers, retirees and GDP. 

'It's a problem because it throws out the balance between workers and retirees,' he said.

'More of the latter, and less of the former, means less tax revenue to pay for more pensions. It also causes labour shortages and lower growth and productivity.'

Kohler noted some positives, including potential improvements to global warming and housing affordability. 

He argued the decline in birth rates could be blamed on smartphones.

'Young people aren't getting out as much, and are having fewer relationships,' Kohler said.

'Unaffordable housing around the world is also contributing to the problem. Young couples are less  likely to have kids if they can't buy a house.'

According to the latest Cotality data, the median price for a dwelling in Australia is currently $941,864.

The figure sits at $1.28million for Sydney, $812,621 for Melbourne, $1.12million for Brisbane, $950,703 for Adelaide, $1.05million for Perth and $752,398 for Hobart.

In Darwin it is $634,368, while in Canberra it is $890,555.

The strongest monthly gains were recorded in Perth and Darwin, where prices increased 1.5 per cent, while Brisbane, Adelaide and Hobart recorded a one per cent uptick.

Sydney and Melbourne bucked the trend, with prices falling 0.9 per cent in the NSW capital and 0.8 per cent in Victoria. 

Kohler said the 'two main solutions to falling fertility seem contradictory'.

'More migration and lower house prices,' he said.

The Albanese government anticipates net overseas migration to sit just below 1million over the next four years.

This financial year, 295,000 arrivals are expected, while the following year will record 245,000. 

House prices across the country are expected to fall over 2026, with Morgan Stanley saying the dip could be as big as ten per cent.

Interest rates, declining household confidence, and the Albanese government's tax reforms have been linked to the decline. 

The Reserve Bank of Australia has raised the cash rate to 4.35 per cent, the highest since 2024, while Treasurer Jim Chalmers announced changes to the Capital Gains Tax in the May 12 budget.

Kohler remained sceptical birth rates would recover, painting a bleak outlook for Australia’s future. 

'Less migration, unaffordable housing and artificial intelligence, providing even better alternative non-human relationships than smartphones, will probably mean birth rates keep falling,' he warned.