How low rates killed the affordable housing dream

By business editorĀ Ian Verrender The possibility of younger people breaking into the property market was short-lived during the coronavirus pandemic.(Reuters: David Gray) For a brief, flickering moment, the dream of a generation seemed within reach.

House prices were on the cusp of one of the biggest falls in decades, hit by what was shaping up to be a near-lethal combination of mass unemployment and zero immigration.

After decades of a seemingly unstoppable real estate bubble, the prospect of a sustained fall in housing prices brought a glimmer of hope to those under 35 that home ownership may become a possibility if they could hold on to a job.

Even relatively conservative analysts were forecasting house price declines of 20 per cent and back in May our biggest bank, the Commonwealth Bank of Australia, pencilled in the prospect of a 32 per cent collapse.

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