Treasury secretary John Fraser finds worry in high housing costs

Treasury secretary John Fraser finds worry in high housing costs
Treasury secretary John Fraser finds worry in high housing costs

Treasury secretary John Fraser says Australia's the high cost of housing is a "worry".

Pressed at the Senate economics committee hearing on Wednesday on the high cost of housing , particularly for younger Australians, Mr Fraser said the gains in prices were fuelling a circle of increased wealth leading to people becoming more comfortable taking on more debt.

"It's a worry. As an old person I talk with people my age.

"And the bank of mum of dad is becoming more and more prevalent," he said.

"It has impacts on superannuation, and why people are saving in their older years to fund their children's housing needs."

Mr Fraser questioned whether households understand enough about the consequences of debt if their income was hit or jobs.

"I don't take any joy that we have this housing situation. Particularly for younger people."

Mr Fraser added that the biggest issue was a lack of supply and land release, as well as needed infrastructure investment on sewerage, roads, and transport.

In June 2015 he said there is was "no doubt in his mind there is a Sydney housing price bubble."

Tags: 
Housing Costs John Fraser

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