RBA Highlights Ongoing Housing Affordability Challenges Amid Supply Improvements

The Reserve Bank of Australia (RBA) recently addressed the persistent challenges of housing affordability, cautioning that there won’t be a quick fix to the issue. However, there are signs that the worst phase of the housing supply downturn might be over.

Federal and state governments are implementing various initiatives to increase housing supply. These measures include streamlining approval processes and reducing costs, but the RBA noted that it will take time for these efforts to have a noticeable impact.

Demographic shifts, such as smaller household sizes and the growing trend of working from home, are influencing housing demand. These changes could help rebalance the market over time.

While market conditions are currently having a greater impact on rent movements than interest rate increases, higher interest rates could potentially worsen the existing housing shortage.

The RBA emphasized that although progress is being made, addressing the housing affordability crisis requires sustained effort and time for policy measures to take full effect.


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Article Title: No ‘quick fix’ to housing crisis warns RBA assistant governor Sarah Hunter
Retrieved from abc.net.au

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