House Price Inflation and the Affordability Crisis
Despite the predictions of a downfall to the property market due to the COVID-19 pandemic last year, in the last week alone, property prices in Sydney have risen by 0.5 percent and 6.3 percent in the last quarter. Despite the rapidly increasing house prices, the annual wage growth released by the Australian Bureau of Statistics remains at just 1.4 percent. Today, less than half of 25 to 34 year olds own a home, and following the trend by 2056, only two-thirds of retirees will own a house, a substantial decrease from being 80 percent today. Then what is the cause for house price inflations within Australia, leading to a crisis in affordability? Joined us earlier, was Professor Peter Phibbs, Professor of Urban and Regional Planning and former Director of the Henry Halloran Trust at the University of Sydney.