> There has been much talk for the past few months about the increasing
> unaffordability of housing in Australia. As we've heard before
> somewhere..."the rich are getting richer and the poor, poorer". It
> seems the land of milk and honey and middle classes is eroding, with a
> widening gap between the haves and have nots.

> Most focus has been on interest rates as a cause for the affordability
> crisis, but now that they are steady(ish) what else can be blamed?

> HIA's Executive Director, Industry Policy and Services, Chris Lamont
> has said that "the worst affordability situation in at least a quarter
> of a century, coupled with low vacancy rates and soaring rents, has
> the potential to create social upheaval, the like of which has not
> been seen since the Great Depression. If people can not afford to buy
> a home, and there is nowhere left for them to rent, then what is left?
> It is a desperate situation." (HIA Media Release 15/01/07)

> Interest rates are definitely a factor for existing mortgagees who
> took on large loans 3-4 years ago, however they play a smaller part in
> affecting those trying to get into the market. Mr Lamont suggests the
> availability (or lack thereof) of ready-to-develop land, coupled with
> enormous planning red-tape and the fact that state and local
> governments see housing as their cash cow are more responsible for the
> crisis.

> The actual cost of labour and materials for a new home has remained
> competitive and roughly in line with inflation, but there are many
> issues affecting the industry outside of its control. The suggestion
> to rectify the situation is a much more collaborative approach between
> government and the housing industry's consumer reps to reduce the red-
> tape and artifical supply constraints. Maybe if this happens, there
> can be a clearer pathway to supplying more affordable housing to the
> average Australian now and into the future.

> It's a scary thought that many Gen X's and Y's won't be able to afford
> their own home in the way their parents have. Already it is easy to
> see that most new entrants into the home-buying market are spending
> far greater percentages of their earnings on the mortgage than ever
> before. How sustainable is it? What happens when people can't afford a
> roof over their head? What ever happened to "she'll be right mate?"

> Have your say here.