Housing affordability is reaching a crisis point in Australia’s biggest cities – with Melbourne and Sydney in particular being of the biggest concern. Historically low interest rates have seen property values have skyrocket in desirable areas, which in turn has had a knock-on effect to rental pricing – rising at a rate disproportionate to that of average income.
“If housing were unaffordable in Sydney, no one would be buying it.”
Joe Hockey fronted a media conference earlier this morning and fielded questions over the growing gap between property owners and real estate investors, and the younger generations who are gradually losing hope of ever being able to enter the property market due to the skyrocketing prices.
“As someone who, along with the bank, owns a house in Sydney, I do hope our housing prices are increasing.”
Today, Hockey added further weight to the argument with a startlingly simplistic analysis of the situation.
“The starting point for first home buyers is to get a good job that pays good money.”
“I say again in relation to what is reasonably expensive entry costs for first home buyers into housing in Australia, the best response is to build more housing.”