Australia’s housing crisis won’t be solved by building more homes, with addressing the nation’s empty bedroom issue more critical to slowing down rampant property price growth.

Most housing experts contend high house prices have been driven mostly by a failure to build enough homes, but RBA governor Michele Bullock says the way houses are being constructed, and the amount of people living in current structures are also adding to the problem.

Wentworth independent MP Allegra Spender asked the RBA if supply was keeping up with demand and if new policies from the government would add to higher prices for houses.

“Yes, you’re absolutely right, it’s a supply issue and are we close to meeting it? All estimates suggest we are not,” Ms Bullock answered.

Ms Bullock also said the way Australians

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