Australia's housing problems will take 'generation' to fix, NAB economist
Property price declines of 7 per cent will not solve Australia's housing affordability issues, NAB chief economist says.
NAB economist Sally Auld predicts that Australia's housing affordability issues will endure for at least a generation, despite forecasted price declines. Westpac chief economist Luci Ellis attributes rapid house price growth to low inflation and financial deregulation over the past three decades. Auld emphasizes that only a substantial increase in housing supply over time can meaningfully improve affordability.
Ellis highlights that lower inflation and financial deregulation allowed Australians to service larger mortgages relative to their incomes. Ellis also notes the role of strong migration in increasing housing demand. The inquiry discussed challenges in housing approvals, infrastructure provision, skilled labor shortages, and construction productivity.
NAB's Auld acknowledged progress in the supply side but stressed that the housing market remains structurally under-supplied. The Albanese government's tax changes are one of many variables affecting the housing sector.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
