Monday, 6 July 2026

If you want to do something about affordability then house prices have to fall

 I was amused to hear Dan Tehan both cheering for falling house prices and bewailing the fact they are falling.

We have a housing affordability problem and this has come about because housing prices have raced ahead of wage increases.

Thus either wages have to increase bigtime , which is impossible because of the inflationary consequences, or housing prices have to fall.  Read THIS article 

Thus far housing prices have started to fall ( because of rising interest rates) and this has contributed marginally to reducing affordability. The main target is to reduce housing prices without inducing a recession.

This is why most people would like to see housing prices continue to fall!

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