Housing prices fuelled by low interest rates in Australia – research


Low interest rates and higher immigration have contributed to higher housing prices in Australia, research carried out by the Reserve Bank of Australia finds.

“Much of the strength in housing prices and construction over the past few years can be explained by the fall in interest rates,” say authors Trent Saunders and Peter Tulip from the RBA’s research department.

The research is based on a model that provides “internally consistent projections for housing construction, prices and rents,” say

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