After years of rapid growth, Australia’s housing market is beginning to cool. Auction show that mortgage arrears remain low. Fewer than 1% of housing loans are more than 90 days behind in repayments.
At the same time, most borrowers have built up substantial equity over recent years, and many remain has become one of the country’s biggest economic and social challenges. Yet we also tend to react negatively to any prospect of falling house prices.
. Gross domestic product (GDP) remains an important measure of economic activity, but it should sit alongside broader measures of productivity, wellbeing, inclusion and sustainability.
Housing deserves the same broader perspective.
House price appreciation is an outcome of the housing market. It is not the purpose of the market – and nor should be wealth generation.
The real objective must be a housing system that provides secure and affordable homes, supports sustainable construction, and remains accessible to future generations. Rising asset values matter, but they should not crowd out every other measure of success.
Source: The Conversation
