Housing and the cost of living
One of the key topics in the lead-up to the budget has been housing affordability and the idea that Australia may be living through a housing bubble
While the consumer price index (CPI)
has increased by just 28% over the last 10 years, the average residential house price
across all capital cities is up 79% and residential house prices in both Melbourne
have more than doubled.
But house prices are not the whole picture. The cost of housing (which includes rent, mortgage and new house purchases, as well as utility costs like electricity, gas and water) is factored into the CPI - a measure that trackes inflation by measuring the changes in price of a fixed "basket of goods and services".
Housing, according to the ABS, makes up 22% of all spending in Australian households and has increased 50.7% over the past 10 years.