Housing affordability has gained even greater prominence recently. In this short paper, KPMG’s Chief Economist Brendan Rynne examines the drivers of house price movements in Sydney and Melbourne, and presents forecasts of house prices given expectations of how drivers have now been influenced by various government interventions.
Since the release of KPMG Economics Research Report Housing Affordability: What can be done about the Great Australian Dream in October 2016, the topic of housing affordability has gained even greater prominence, primarily due to the continued rise in house prices in Sydney and Melbourne.
In the 2017 Federal Budget, the Commonwealth Government has announced a range of measures which are aimed at ‘putting downward pressure on rising housing costs’, with the Treasurer even acknowledging in his Budget speech that “there are no silver bullets to making housing more affordable”.
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