Advisory Center for Affordable Settlements & Housing

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Housing Affordability Problem in Australia

The paper provides a rationale for the continued use of the 30/40 affordability rule (housing costs below 30 percent for the bottom 40 percent of the household income distribution) both because it provides continuity with traditionally used measures and because it is simple to apply and easy to understand. However, a case is also made for providing additional complementary indicators that are more responsive to household needs and capacity to pay.

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