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Australian Officials Look to Improve Affordability of Housing Market

Australian Officials Look to Improve Affordability of Housing Market
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Although Australia has not faced many of the same troubles as the rest of the world when it comes to their housing market, they are still dealing with issues of their own. The most recent real estate market report indicates that housing prices have increased an unbelievable one hundred and fifty percent over the past ten years. During the same time period, the average income for Australians has increased only sixty percent. Rents have also increased faster than inflation in the last few years.

Officials worry that the lack of affordability that has overcome the housing market in Australia may eventually lead to a real estate market crash similar to those seen around the world. As such, they are debating ways in which they will be able to curb the unprecedented growth in housing prices in order to avoid any kind of bubble.

Other groups are lobbying the Australian government to reform the current housing industry so as to make changes in taxation system, and to also provide better alternatives for low-income renters. The government currently does have a First Home Owners Grant in place to help first-time homeowners make a housing purchase. However, many real estate experts believe that the program has been vastly ineffective, and has actually accomplished the opposite of what its initial intentions were. They claim that the program has actually served to further increase prices, making housing even less affordable than ever before.

The Australians for Affordable Housing group has been very vocal in their push to make housing more affordable in Australia, and believes that comprehensive reform is absolutely necessary to change the overall course of the housing market.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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