Labor and the Coalition have launched policies to tackle the crisis, but they shied away from the idea of falling house prices.
Australians would have to wait 70 years for affordable housing if property values follow the “sustainable growth” path advocated by the two major parties.
Labor and the Coalition this week launched signature policies to tackle the worsening housing affordability crisis, but both sides of politics said they did not welcome the idea of falling house prices.
Assuming home values from here climb in line with the Reserve Bank’s inflation rate target of 2.5%, and wages grow by 3.5% a year, it will take 70 years for this “sustainable growth” path to push the house price-to-income ratio back down to 6.5.
