The housing affordability issue is a widely and hotly debated issue with divided opinions.

Below we share with you the opinions of two independent and respected real estate analysts, Terry Ryder from and Louis Christopher, Managing Director of SQM Research. I believe the explanations given by both analysts are the main reasons why Australian housing is so expensive.

You will find that both analysts agree on the cause of the housing affordability issue. They both independently arrive at the same conclusion as to the cause of our problem.

The Housing Affordability issue
By Terry Ryder, author of…

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In the three months to June 30th, Melbourne’s median house price has risen for the fifth consecutive quarter. New data from the Real Estate Institute of Victoria shows the Melbourne median house price jumped 2.9% to $822,000.

Melbourne’s popularity is attracting many more people who want to live here increasing our population by more than any other city in Australia. This is creating greater demand for housing and pushing prices higher. Low interest rates is the other primary driver of the price growth we are experiencing.

The NAB residential property survey predicts the Melbourne house market will continue to…

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Sweeping changes to Melbourne’s zoning laws came into effect about three years ago. Melbourne has four major zones with the most restrictive being Neighbourhood Residential Zone (NRZ).

The most current notable change to the State Government’s residential zones is the removal of the mandatory two dwelling restriction per lot in the NRZ.

There is now no limit to the number of dwellings that can be constructed on a lot - including NRZ - provided each dwelling meets the required minimum percentage of garden area.

The new minimum garden area requirement for lots of 400sqm or greater for General Residential Zone…

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The Federal budget always seems to throw up plenty to discuss. The media understandably pounce on the headline elements of the budget.

Sometimes budget measures which are the least discussed can be the most intriguing.

The Government has upgraded the ability of the Australian Prudential Regulation Authority (APRA) to curb excessive and poor lending into the housing sector. APRA now has the authority to limit bank lending on a regional basis and even postcode basis, if need be.

The Australian economy is a tale of depression and boom. The Reserve Bank of Australia (RBA) would probably like to cut interest…

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