There has been growing concern over the housing affordability crisis for quite some time. The latest figures however have taken us into unknown territory. Now, for the first time, a family will need a household income of more than $100 000 in order to qualify for a mortgage to buy a median priced home. In other words, an average family can no longer afford to buy an average house. Naturally there is a growing expectation that the government will somehow “fix” the problem. The fact is that government has been part of the problem, in particular State and Local governments adding to the cost of development with increasingly excessive levies and charges. In the end, if capital values continue to be over-inflated, the market will find a way to correct itself. That’s why it’s appropriate for home affordability to be on the Federal election agenda. If the crisis can be managed so as to provide an easing over time, it would help to avoid the risk of a more damaging market collapse at some point in the future. After all, that is something we really can’t afford.