Seeing through the mirage of affordable housing

Recent reports suggest that housing affordability in Australia has reached its highest point in more than a decade, but there are several reasons why that conclusion is dubious.

Yesterday it was widely reported that housing affordability had increased to its highest level in 12 years. Quite frankly, that result is a mirage, supported by dubious data, and completely at odds with the experience felt by many Australians.

On a quarterly basis, the Housing Industry Association releases a housing affordability measure which assesses whether it has become easier or harder for Australians to service their mortgage debt.

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