Macro Investing: A property price bubble?

Key Points The housing stock to GDP ratio suggests Australian housing is expensive Housing affordability has improved but risks are still high You can either pretend they’re not, or do something about it The inexorable rise of Australian home prices over the past two decades has led to widespread debate about whether Australian housing is overvalued. Surveys by The Economist and Demographia claim that Australian homes are amongst the most expensive in the English-speaking world – the former based on a price-to-rents methodology, the latter on house prices relative to incomes. On the other hand, the Reserve Bank of Australia (RBA)...

The inexorable rise of Australian home prices over the past two decades has led to widespread debate about whether Australian housing is overvalued.

Surveys by The Economist and Demographia claim that Australian homes are amongst the most expensive in the English-speaking world – the former based on a price-to-rents methodology, the latter on house prices relative to incomes.

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