Locked Out: How Victoria's land supply laws are keeping young people out of the housing market
In reviewing the costs of new housing in Melbourne the conclusion is that housing is unaffordable for ordinary families who are not already home owners. The cause of this is state government policies, especially restrictions on land release. In total, government policies, taxes and charges add $135,000 to the cost of a new home, or 32 per cent of the cost of a $370,000 house and land package. This means that a family on median income buying a house at the median price would be paying 56.2 per cent of their after tax income on housing.