DEMO — development content for layout testing. Not real editorial reporting.
DEMO content for development and layout testing — not real editorial reporting.
When housing supply responds slowly to demand — because of land constraints, planning rules or construction costs — prices tend to rise faster than incomes.
How it works
Lower interest rates can raise the price buyers are able to pay, while higher rates can make monthly payments harder to meet.
Affordability depends on prices relative to incomes and on the cost of borrowing. Supply is often the decisive long-run factor.
What to watch
Policy responses range from planning reform and public housing to support for first-time buyers, each with different effects.
Key concepts
- Housing
- Affordability
