The Historical Context of Housing Affordability

Historically, essential goods were scarce and expensive, with most personal spending directed towards necessities like food. This changed after the industrial revolution when innovation led to increased abundance in many sectors, although housing has defied this trend. In Australia, the cost of housing, particularly in cities like Sydney and Melbourne, has significantly outpaced income growth, tripling in the last quarter-century. This has resulted in a housing crisis characterized by unaffordable prices, affecting people's ability to live close to work, reach financial stability, and maintain familial connections.