House prices must fall – to avoid scenario that is far more dangerous

  • Intense media focus on housing affordability has primarily focused on the story of the individual; the young person who can’t afford a house. But in all of our focus on the individual, we are failing to recognise the greater problem – that when house prices do fall, and they will, they risk taking our banking system and the wider economy with them. We need to induce a “soft decline” before it is too late.


While prices do need to decline to make housing more affordable, we need to prevent this from happening in an uncontrolled manner. Photo: Andrew Meares

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