Housing Affordability Crisis in Australia: Causes, Impacts, and Alternative Solutions

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Running head: HOUSING AFFORDIBILITY CRISIS IN AUSTRALIA
Housing affordability crisis in Australia
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HOUSING AFFORDIBILITY CRISIS IN AUSTRALIA
Table of contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................3
Main issues.................................................................................................................................3
Key stakeholder impacts............................................................................................................4
Consumers..............................................................................................................................5
Investors.................................................................................................................................5
Renters....................................................................................................................................5
Economic concepts.....................................................................................................................5
Scarcity...................................................................................................................................6
Market structure.....................................................................................................................6
Government interventions......................................................................................................6
Alternative solution....................................................................................................................7
Conclusion..................................................................................................................................7
Reference list..............................................................................................................................8

HOUSING AFFORDIBILITY CRISIS IN AUSTRALIA
Executive summary
The following report aims to focus on the housing affordability crisis present in Australia.
The thesis statement in the following report is as follows- Australia is facing a severe
housing affordability crisis in the recent decade where people are unable to afford
houses and the foreign investors and the baby boomers are the major reason behind it.
The first part of the report focuses on the crisis which has been caused due to the housing
affordability in Australia. It has been found out that due to the high cost of land, it has
become write impossible for the Australians to find an affordable house. The problem is that
popular cities like Sydney and Melbourne have been termed as the least affordable places for
dwelling in Australia. The major stakeholders who are affected in the crisis are mainly the
consumers and the renters. The report further shows how the consumers, renters and the
investors who are the part of the stakeholders gets affected by the housing affordability crisis
in Australia. the following part of the paper states the reasons behind the crisis which took
place in Australia. next comes the economic concepts through which the problem can be
related. The method of research which is used in the study is secondary. The economic
concepts shows how scarcity of land can lead to the rise in market price and how government
intervention is required when there is a presence of market failure. From the report it can be
found out that when government intervenes in the market, the housing affordability crisis can
be brought down. Scarping of the stamp duty and applying new tax rules for buying new
houses is highly recommended.

HOUSING AFFORDIBILITY CRISIS IN AUSTRALIA
Introduction
Housing responsibility refers to the term which is used to describe the relationship
that is present between the incomes of the household and the expenditures on housing.
Housing affordability in Australia has become one of the focus point for the urban planners in
the current years. Sydney has been ranked as one of the least affordable housing market (The
Conversation. 2018). Rising property prices is one of the reason for the affordability crisis in
Australia. Sydney and Melbourne are the worst affected places.
Problems:
The shortage of any kind of affordable housing in both Sydney and Melbourne means
the huge rise in price of the land. In large number of small towns in Australia it has become
nearly impossible in Australia to build homes. Also, in some parts of Australia people are
been forced to move out of the city where they have been raised to less attractive places
where they can afford to stay.
Thesis
Australia is facing a severe housing affordability crisis in the recent decade where
people are unable to afford houses and the foreign investors and the baby boomers are
the major reason behind it.
Main issues
The key issue describes in the case study refers to the housing affordability crisis
present in Australia. The housing affordability crisis present in places such as Wingecarribee
shows the way Australians live. The housing affordability crisis also making the people much
poorer. One of the major reason behind the housing affordability crisis is due to the
availability of cheap and easy credit provided by the Australians banks. Another reason