The housing affordability crisis

The last 18 months has been unprecedented in a number of ways, but the rebound in the housing market has taken most by surprise. 

There are number of reasons why the market has rebounded including low interest rates, some relaxation in lending restrictions and low supply in some areas.

The outcome is that many younger people are being priced out of the market, which isn’t a new problem but one that’s intensified in recent months and one that’s likely to gain increasing media attention as we approach the next federal election.

The intent here is to summarise some recent government initiatives that are intended to assist young people enter the housing market and also some commentary about what might happen if this or future governments determine that more intervention is needed (with reference to a recent initiative from the New Zealand government).

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