Australian house prices continue to outpace income growth despite budget reforms aimed at affordability
By
Greg Jericho
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Summary
Australian house prices continue to outpace income growth, with average dwelling prices rising 2.1% in the March quarter versus 0.8% growth in household disposable income. Recent budget changes to capital gains tax and negative gearing offer hope for improved housing affordability, though the article notes that after 26 years of policy-driven price inflation, significant challenges remain. The piece argues that housing affordability has been damaged by policies dating back to the Howard era that turned the housing market into an "investor casino."
Key quotes
· 3 pulledIn the March quarter, average dwelling prices across the nation increased 2.1% – well ahead of the 0.8% increase in average household disposable income.
After 26 years of damage, there is a long way to go.
An average home would cost $595,500 now if prices were the same relative to income as before John Howard turned the market into an investor casino
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