Record divergence between house prices and rents

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By Leith van Onselen

One of the biggest dichotomies that has emerged across the past year has been the massive divergence between Australian house prices and rents.

The below chart, which tracks the ABS’ house price series against its rental price series, illustrates the situation in real inflation-adjusted terms:

ScreenHunter_16677 Dec. 13 13.17

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.