Housing affordability improves, but the problem remains
Housing affordability remains a significant national challenge despite the latest HIA Affordability Report showing an improvement in the early months of 2017.
"The majority of the growth in population attributable to overseas migration is occurring in the eastern seaboard states, which underpins the strong growth in these jurisdictions."
RBA uses strongest language yet to warn of housing 'risks'
As ABS data confirms that property prices are rising strongly in some cities, the minutes of the March Reserve Bank board meeting flags concerns about the "build-up of risks" in the housing market.
Reducing the cost of new housing supply and tackling the deposit gap faced by aspiring first home buyers is the appropriate policy response to Australia’s housing affordability challenge,” says HIA Chief Executive Industry Policy, Kristin Brookfield.
With Melbourne's population expected to grow by 100,000 new residents every year, the changes allow for greater density in the city's middle-ring suburbs, says Joseph Walton of the REIV.
The Reserve Bank of Australia left the official cash rate at 1.50 per cent but credit conditions have tightened for investors over recent months, and owner occupiers are wary about rates as the banks move unilaterally, says Shane Garrett of the HIA.