Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Supply and demand both influencing affordability: RBA

Staff Reporter 1 minute read

Increasing demand and constrained supply are fuelling Australia’s excessively high house prices, according to the RBA's head of economic analysis Anthony Richards.

Speaking in Melbourne yesterday, Mr Richards said that the demand for property was causing house prices to increase in inner city suburbs, while supply issues were putting pressure on prices in outer suburbs.

While conceding that the government could do little to improve affordability in the short-term, he suggested policies addressing affordability should address supply and demand.

“On the demand side it is now widely accepted that policies that simply give people more money to spend on housing are likely to be capitalised into higher housing prices,” Mr Richards said.

“On the supply side, efforts to improve housing affordability should be focused on policies regarding land use and on improving efficiency in the supply of land and housing.”

Published: 28-03-08

Supply and demand both influencing affordability: RBA
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

default

 

more from the adviser
mortgage document sign ta 1 in 5 borrowers lies on loan applications

One-fifth of Australians have admitted to not telling the whole t...

money au ta Judo Bank valued at $1.9bn after equity raise

The SME challenger bank has announced its latest equity funding r...

gentlmen handshake Choice announces commercial white label service

The aggregator has partnered with a finance brokerage to add a co...