The CEOs of Australia's three largest banks expressed concerns about how Australia's housing shortage is not only driving prices higher but also preventing first-time homeowners and migrants needed to fill skills shortages across the country. They highlighted these issues at a banking conference in Sydney, attributing the situation to a housing supply shortage and urging local governments to expedite planning approvals.
According to a 2023 government report, after years of ultra-low interest rates pushing home prices higher, Australia is witnessing a long-term decline in the number of younger people purchasing homes. This trend could potentially result in more individuals retiring with weaker financial positions.
CBA CEO Matt Comyn, speaking at the AFR Banking Summit, emphasized the significant problem posed by the housing market, which ranks among the least affordable globally when considering debt-to-income ratios. Similarly, Westpac CEO Peter King acknowledged that prices tend to rise in a supply-constrained market but noted that current home prices are excessively high from a societal perspective.