27 Aug Will house prices crash? And what’s needed to fix housing affordability
Key Points
- Predictions of an Australian house price crash create lots of interest but have been a dime a dozen over the last 20 yrs.
- However, there is more to the surge in property prices than easy money with a supply shortfall being the main factor. Absent much higher interest rates and or unemployment, a house price crash in Australia looks unlikely.
- The key to sustainably improving housing affordability is to boost supply, better align immigration to housing supply, reduce or delay public infrastructure spending, encourage decentralisation and tax reform.
- A failure to boost affordability risks a further slide in home ownership and rising inequality.
