November 28, 2025Australian Economic PapersOpen Access

Is Housing Supply an Effective Remedy for Australia's House Price Affordability Trend?

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Increased housing supply is projected to have minimal effect on the price–income ratio.
A model estimated from 1974 to 2023 indicates significant income elasticity affects affordability.
Policy analysis explores barriers to new housing supply and their implications on planning debates.
Achieving aspirational supply targets could take 20 years for noticeable outcomes on affordability.

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Policy analysis reveals housing supply boosts may only marginally improve affordability in australia, suggesting income elasticity issues.

Christian A. Nygaard (2025) studied this question.

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Policy analysis reveals housing supply boosts may only marginally improve affordability in australia, suggesting income elasticity issues.