What Causes Low Housing Affordability? Low Wages is a Big One!
What causes low housing affordability? This is a question people have been asking since this current property boom began.
Perhaps it isn’t the right question.
Perhaps it is not “what causes low housing affordability?” but “why can’t people afford houses?” Why do we have cops that couch surf?
Housing Affordability – The Real Issue and What Can Be Done About It. DF Partners, May 2017
Only 8% of Australians aged between 18 and 35 (the millennials) believe they will be financially better off than their parents (Deloitte Millennial Survey 2017). Housing affordability is top of mind for many Australians in this age group resulting from national house prices accelerating ahead of national income.
In this article Development Finance Partners’ (DFP) Senior Credit Executive Stephen Turner discusses the dynamics behind the issue and assesses the potential solutions.