Why are australian houses so expensive?

Factors specific to the Australian market Very limited land supply and extremely onerous planning approval processes. The main drivers of poor housing affordability and high levels of household debt in Australia have been low rates and poor housing supply. In 1945, about a month after the end of World War II, politicians convened a national conference in Melbourne to discuss Australia's urgent homelessness. Well, not being able to afford a home can be incredibly disappointing for a lot of people, and there are a lot of problems with Australia's tenancy laws that don't fit tenants' rights.

Australia's largest city, Sydney, now ranks second after Hong Kong as the world's least affordable city to buy a home, according to the latest Demography International Housing Affordability Survey, and it's not even the fastest growing market in the country. Some Australians find buying a home increasingly out of reach after almost tripling prices in the last 20 years. A lot of public housing was also built and then sold as private property, and people who had served in World War II were eligible for specific home loans for war services. In 1947, housing gained its own ministerial portfolio for the first time, and the next two decades saw a boom in the number of houses built.

In fact, the cost of buying a home is higher than ever and that increase is expected to continue for at least another year. The most fundamental measures to improve housing affordability should focus on increasing housing supply and decentralizing away from major cities. Although the lack of immigration contributed to this, domestic migration could have had a greater impact on the housing market. So why is Australia's housing market so out of control and how do we get to this point where it seems like an entire generation can't afford to buy their own homes? During that time, the cost of buying a home has skyrocketed from two to three years of family income after taxes to three or four years of income.

With house prices rising since the 1990s, there has been an increase in debt that carries the risk of financial instability should something go wrong with the ability of borrowers to repay that debt. For as long as I can remember, housing affordability has been an issue in Australia, but since the 1990s it has gone from being a periodic cyclical concern to a chronic problem. It's also worth noting that there were rental controls at the time that were a bit of a deterrent to landlords, which in a way discouraged people from buying houses just to rent them.

Alison Valentine
Alison Valentine

Incurable tv expert. Lifelong bacon fanatic. General internet trailblazer. Freelance social media enthusiast.

Leave a Comment

All fileds with * are required