First Home Owner Grants are not enough to combat the increasing house prices, according to a recent report: The House prices, ownership and affordability: trends in New South Wales. The report highlighted that New South Wales have been struggling with home affordability since the 1960’s.
From 1960 to 2006, house prices have increased by an average of 2.7% annually, compared to household incomes at a 1.9% annual growth rate. Although house prices have stabilized since the 2000’s, the low interest rates have trigged an increase in home values for the past year. In Sydney alone, the median house prices have increased by 15% since 2011.
Stabilizing the demand with supply is the key advice of the report, stating that issues with housing supply can further trigger house price increases.
Read more about this on the Australian Property Investor website.