Property News Australia.com.au

Housing affordability in Australia has emerged as a major election issue, after the First Home Buyer Affordability Index, compiled by the Housing Industry Association and the Commonwealth Bank, fell to its lowest level.
Prime Minister Howard says he understands there is a problem with housing affordability.

“You won’t solve it by releasing for housing the high court or the parliament, which are two buildings included in the leader of the opposition’s six billion dollars,” he said.

Kevin Rudd announced Labor’s polices which includes freeing up surplus commonwealth land and a $500 million fund to cut the cost of infrastructure on new housing developments.

Mr Howard says that prices have risen due to low interest rates allowing people to borrow more and buy more expensive homes.
The Housing Institute of Australia-Commonwealth Bank quarterly review found that housing affordability had fallen to a record low after interest rates hit their highest level in nearly a decade after nine successive rises.

The findings come amid mounting speculation that rates will rise again next month if inflation for the September quarter is high.

But the question needs to be asked what will happen to the housing market if America’s Federal Reserve System is abolished?

 This is the policy of a Congressman Ron Paul, a top-tier Republican GOP American Presidential candidate, who opposes the Federal Reserve, and supports a dollar backed by real money gold and silver, as the U.S Constitution mandates, instead of prosperity-wrecking fiat money.

It seems the monetary policy issue is being overlooked in the housing afford ability debate.
Releasing more land effectively dilutes the value of the housing market just like printing fiat money dilutes the value of the dollar.