dudes, i have a friend involved in property development, and talking about affordability saw unaffordability is in two parts. The first is the restriction of land and the use. Many cities, councils are opposed to medium density in their suburbs because some people dont want change. Think of how many single blocks are in sydney and melbourne that for 'planning reasons' redevelopment is being knocked back. this planning process in turn causes delays adding to the cost of the project. The other factor is the shortage of trades persons.
The average, and not to smart tradesmen, earns $100,000, with young tradesmen just finishing their aprrentices getting $70,000. The 457 visa's have in parts had the effect of reducing building costs. The builder friend had no problem using these people and preferred them to some of the arrogant locaL tradesmen he had.
The other factor is the expectation of people, he built some basic affordable housing sometime ago and found a lukewarm reception. the couples going through the homes were not impressed as it didnt have the separate family room/rumpus, the spa, the swish kitchen and so on. He even had one couple who asked why he hadnt put in a theatre room. they couldnt afford it but nevertheless expected. some wanted 4 bedrooms, yet they had no kids or planned to have any in the foreseeable future and so on and even complianed they were to small. the homes were basic affordable homes yet were rejected.
The builder now builds what people want not what is affordable.
The latter point i think is the main reason for unaffordability. like the couple on the 4 corners episode who had the mortgage problem. They owed $650,000 and had a huge house. Rather than being content with something affordable they wanted the unaffordable and are paying now for this excess.
