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Australian Budget Takes Aim at Housing Crisis as Affordability Woes Mount

Australia’s upcoming federal budget is expected to prioritize tackling the nation’s escalating housing crisis, with skyrocketing prices putting homeownership further out of reach for many. The announcement comes as the Reserve Bank’s interest rate hikes fail to cool the market, with property consultant CoreLogic reporting a 15th consecutive month of price gains in April.

The median house price in Australia now sits at a record A$779,817 (US$530,115), squeezing budgets and straining affordability. Eliza Owen, head of research at CoreLogic, paints a grim picture, stating affordability is currently at its worst on record. Renting isn’t much better, with Australian Bureau of Statistics data showing rents surging by 7.8% annually.

Treasurer Jim Chalmers is set to unveil the budget on Tuesday, and it’s widely anticipated that measures to address the housing shortage will be a centerpiece. The exact details remain undisclosed, but speculation suggests a multi-pronged approach could be on the horizon.

Possible solutions range from increasing supply by investing in new developments and streamlining approvals processes to tweaking tax breaks for investors or introducing incentives for first-time buyers. The challenge for Chalmers will be crafting a budget that effectively tackles affordability without further inflating an already heated market.

The housing crisis has become a major social and economic concern in Australia, with many locked out of the property market and facing a growing burden of rent payments. The upcoming budget will be closely watched to see if the government can deliver effective measures to bring some relief to struggling Australians.

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