When the Reserve Bank announces on Melbourne Cup Day that interest rates are staying where they are because inflation is too high again, the general response will be that it's a blow to mortgage holders.

This is the main thing you need to know about why house prices aren't coming down or even staying put.

The nation has not yet embraced the idea that housing needs to be more affordable — that it's the most important economic and social issue facing the country.

We talk about it a lot, and lament the problem with a solemn face, but when interest rates go up or don't come down, it's bad.

The house price to income ratio

That's because most people want interest rates to be lower and their house to be worth more; most don't want more high-rise apartments in their suburbs, although state go

See Full Page