The OECD has released a new report which estimates that Australia has the fifth most expensive housing market in the developed world, with our Kiwi cousins across the pond topping the list:
According to the OECD, at the end of 2013 Australian housing was 45% over-valued relative the long-run average (from 1980) when measured against rents and 28% over-valued when measured against incomes. This compares to the OECD average of 6% over-valued when measured against rents and 5% under-valued against incomes.
New Zealand’s housing market, where prices nationally have risen around 18% above their November 2007 peak, are the developed world’s most expensive, with values an incredible 70% above their long-run average when measured against rents and 32% above average when measured against incomes.
