MEDIA RELEASE: ABS Data Update Needed Urgently Before Dangerous Housing Bubble Explodes
Queensland Senator Gerard Rennick is calling on the ABS to urgently rethink how it calculates cost of housing data.
Senator Rennick says the omission of the cost of existing housing from inflation figures is creating a flawed view of housing prices and is having serious repercussions for home buyers.
“When the cost of existing housing isn’t reflected in the figures it means the economic picture is thrown out of whack.”
Senator Rennick says that excluding existing housing prices from inflation means the RBA can continue to justify lowering interest rates to irresponsible levels.
“In the last six months the RBA has lowered interest rates to 0.1 percent, and in response housing prices have gone through the roof.”
“Young people are already finding it hard to break into the housing market, and these impacts and rising housing prices make it almost impossible for first home buyers.”
“I’m very concerned about the future of our housing sector in Australia, and even more so for my own children who may never be in reach of the Australian dream,” said Senator Rennick.
Recent CoreLogic figures show in February this year housing prices rose by 2.1 per cent nationally, the highest national upswing since August 2003, and prices are forecast to continue growing in some capital cities by up to 12 percent.
ABS Figures show that in January lending to investors increased by 9.4 per cent, the biggest rise since 2017.