Bank profits soar as falling prices fail to ease housing crisis
Government policy hasn't improved housing affordability despite price falls expected to continue until 2028, banks tell parliament.
Australia's government policy changes and interest rate rises have not made more homes affordable or increased housing supply, the country's biggest banks told a parliamentary inquiry on Thursday. Westpac is lending to 30% fewer housing construction projects than it did up to a year and a half ago.
While the government created incentives for investors to build new homes, Westpac said it hasn't yet seen this take shape at the scale hoped for. The bank expects home prices to fall about 13.5% from peak and stabilise around 2028.
Inquiry chair Ed Husic pointed out that the big four banks are making profits of around $234 per week from an average Australian family's home loan.
- 30 percent fewer projects
- Construction lending decline
- 13.5 percent from peak
- Expected price fall
- 30.6 percent decline year to September
- Investor loans crash
Why it mattersAustralians looking to buy homes or invest face extended affordability pressure even as prices fall, with construction activity slowing.
AustraliaAustralian renters and first-home buyers face continued expensive housing; construction workers may see fewer jobs as builders slow new apartment and townhouse projects.
✓ Claims checked against the source. checked 2 d ago
