📊 Part 1: Economic Analysis - Housing Market Crisis

Context: Australia's housing affordability crisis has reached critical levels. In Sydney, the median house price is $1.2 million, whilst the median household income is $95,000. Interest rates have risen from 0.1% to 4.35% since 2022.

1. Which economic factor has the GREATEST impact on housing demand in Australia?

Population growth and migration

Interest rates set by the RBA

Government housing policies

Construction costs and labour shortages

2. Select ALL factors that would INCREASE housing supply in Australia:

Reducing development approval times

Increasing skilled migration for construction workers

Higher interest rates

Government investment in social housing

Zoning reforms allowing higher density development

3. If the RBA increases interest rates from 4.35% to 5.5%, the most likely SHORT-TERM effect on the housing market would be:

House prices increase due to reduced supply

House prices decrease due to reduced demand

No change as other factors are more important

Construction increases to meet demand

💡 Part 2: Economic Evaluation & Solutions

4. Analyse TWO government policies that could address Australia's housing affordability crisis. Consider both benefits and drawbacks of each policy.

5. Explain how the housing crisis demonstrates the economic concepts of supply, demand, and market equilibrium. Use specific examples from the Australian context.

6. The concept of ________________ explains why young Australians are increasingly unable to enter the housing market, as their income growth has not kept pace with ________________ increases.

7. If you were the Treasurer of Australia, propose ONE innovative solution to the housing crisis that hasn't been widely implemented. Justify your choice using economic reasoning.

🎯 Success Criteria & Extension Activities

Success Criteria - You will be successful if you:

Correctly identify key economic factors affecting housing markets

Analyse government policies using economic concepts

Use specific Australian examples and data

Demonstrate understanding of supply and demand

Evaluate economic solutions with benefits and drawbacks

Differentiation Support:

• Additional Support: Focus on questions 1-3 and use the word bank: equilibrium, affordability, supply, demand, interest rates

• Visual Learners: Draw a supply and demand graph for housing in the math work area below

Extension Activity (Advanced Learners):

8. Research and compare Australia's housing affordability with ONE other developed nation. Analyse what economic policies or factors contribute to the differences.

Australian Economics Assessment Task

Australian Economics Assessment Task

📊 Part 1: Economic Analysis - Housing Market Crisis

💡 Part 2: Economic Evaluation & Solutions

🎯 Success Criteria & Extension Activities

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