Australians might be better off renting, paper finds
A lower real house price growth trend would make renting more attractive
If real Australian house prices continue to grow at the average rate of the past six decades, then buying a house now would be about as costly as renting, according to a research discussion paper by two economists at the Reserve Bank of Australia.
In Is Housing Overvalued?, Ryan Fox and Peter Tulip argue that a comparison of the costs of home ownership with the costs of the nearest alternative – renting – "seems central to a measure of overvaluation".
Their research shows that if real house
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