IndexIntroductionLiterature ReviewConclusionIntroductionHousing affordability has always been a matter of concern as the staggering spending on housing in Australia has been at the forefront of he ongoing approach when we discuss and care about how tax is collected in Australia. So, among all three topics of the assignment, this seems to me the most interesting, since every family in Australia is directly affected by the price of houses. It shows each family's ability to meet the cost of housing and also balance their capabilities to meet other basic living needs. This is the problem of every one in nine families and is a cause for real concern. This topic is closely related to every individual living in Australia, as housing is a basic necessity for a human being. Being students, housing affordability always seems to be a challenge for us. In normal context, people confuse “housing affordability” with “affordable housing,” but both are completely different terms. The former deals with the relationship between the amount spent on housing, including rent, bonds given, prices and other incomes, while the latter deals with that particular section of society whose income is less than the normal family income which in other words, housing is accessible and responds to the needs of middle and lower class families. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay It is well known that there are affordability issues across Australia. The most commonly used criterion for affordability is the 30/40 rule, which refers to the fact that of the 40% of the income distribution, 30% is allocated to housing, but still appears to be out of reach for families (Australian Bureau of Statistics' Household Expenditures, 1998). Using this 30/40 criterion broadly, more than 60% of families, which primarily include low-income families, are experiencing housing stress. A family is said to be in "housing stress" if it spends more than 30% of its earnings on housing. In this essay I will discuss the different trends in housing costs over the decades and what the main reasons behind this are and how the Royal Commission is responding to the situation. Literature Review To approach the estimation of reasonableness of accommodation in Australia, we have two noteworthy ways: proportional measures and remaining measures. Proportion or ratio measures pay more attention to the link between housing consumption (costs and expenses) and household income, both as an average and as an average. Most of the different hotel industries such as ABS, OECD and many others only publish estimates on proportions. As outlined by Gabriel et al in 2005, the remaining measures emphasize a family's ability to maintain a satisfying lifestyle despite housing costs. According to the 2014 Reserve Bank of Australia report, submitted to the Senate Economic Reference Committee's inquiry into affordable housing, it states that "Australian house prices have risen by around two-thirds relative to income over the decade until about the end of 2003." ' (Gabriel et al, 2005). On average, private renters spend a larger share of their household's gross salary on housing costs than other types of residences. They are spending 20% ​​of their gross household income on housing costs in 2013-2014, compared to 16% for those with a mortgage forhome (ABS publication, Housing Occupancy and Costs). Australia's housing affordability graph has shown a sharp decline since the early 1980s. House prices have shown an increase of almost 80% over the last 40 years up to 2014. The Select Committee on Housing Affordability concluded by stating that: – The average price of houses in metropolitan cities is almost equal to more than 7 years of average income; Despite the country's economic prosperity, nearly 1,000,000 families live in housing stress and 100,000 people spend the night homeless on the streets on any given night. On the other hand, if you look at the last 18 months, Australian housing costs have fallen. Nationwide, the price index was 2% lower year-over-year in August 2018. This can be seen as this country's first decline in home prices in five years. Certainly, costs remain 40% higher than normal in 2012, when abundant credit supply and robust external demand began to control the market (Taosha Wang, 2018). Falling property costs and rising debt service costs reduce optional pay and produce adverse effects that could force household utilization and, in so doing, prevent the Reserve Bank of Australia (RBA) from increasing its cash rate from 1.5% for quite a while. This is the reason for our increasingly conservative outlook on a lower impartial rate and a sweet spot for Australian bond yields. Australian banks are also expected to be negatively impacted, given their large exposure to the accommodation sector, directly and implicitly. Furthermore, accessibility to home loans has been stabilized thanks to real estate cooling measures and deeper banking investigations. In recent years, the Australian Prudential Regulation Authority (APRA), the country's financial watchdog, has taken several measures to cool the property market. In December 2017, the Australian Government established the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry to investigate unfortunate behavior in the balance sheet segment. More fragile investment demand is another important explanation behind the decline in housing values. Overseas demand developed rapidly between 2013 and 2016, particularly from China, and maintained around 15-25% of new housing supply in the country's largest urban areas such as Sydney and Melbourne. that the Royal Commission has failed to understand the work of home loan agents and the aggressiveness they convey to the market following its proposals to eliminate trail commissions for intermediaries, which the Government has implemented since July a year from today. Finance Brokers Association of Australia chief executive Peter White said it is extremely disconcerting that the Royal Commission has to destroy exactly 20,000 private businesses for the monetary augmentation of huge banks, and we believe the Government will see this clearly and continue to work extensively with our industry to improve shopper outcomes. He also added that borrowers trust and support intermediaries. So, there is a reason behind the fact that over 59% of receivables are composed through representatives. Customers do not have problems with agents' commissions as they show better results by using a home loan dealer. Retailers offer better service, more choice and highly trained experts to accompany them through a gigantic and stressful time in their lives (Peter White, FBAA, 2018) In other.