Synopsis
We have all heard about the calamity that is the modern housing
market.
With so many Millennials abandoning their dreams of owning a house,
and the youth of Generation Z not even willing to broach the topic, I
thought it would be nice to reflect on the history of the Australian
housing market. More specifically, how it has developed over the last 50
years.
So let us, in light of the recent, rampant rate hikes by the RBA,
examine Aussie housing data.
[Image Caption: Drake Shying Away from a Pricey House]
Conclusion
This concludes our visual examination of the history of Australian
house prices.
While this presentation validates the housing concerns held by
Millennials and Generation Z, it also offers a lifeline by emphasising
the importance of population.
As demonstrated in the previous slide, population is the key reason
for the massive hikes in house prices seen in major cities like Sydney
and Melbourne. Although, the less populated cities did not share this
pattern as strongly.
To this end, it is reasonable to deduce that remote, sparsely
populated locations will have more affordable housing.
However, it is key to balance the quality of the location with the
dwelling. For example, housing in Melbourne and Sydney are popular
because the locations themselves are a hotbed for job opportunities and
amenities.
Purchasing a remote property would forfeit these benefits.
Ultimately, with each passing year, the difficulty to afford a house
continues to grow and now, with the recent rate hikes by the RBA, the
next batch of ABS census data past 2023, will likely spell a gloomy
future for the housing market.
