A related challenge is to find the workers to build the new housing in regional Australia – an issue to which I will return shortly. The other aspect of the housing market that we are paying close attention to is the increase in household borrowing. The RBA does not, and should not, target housing prices.
We do though have a strong interest in trends in household borrowing, especially given the already high level of household debt in Australia. It is important that lending standards remain sound in an environment of low interest rates and rising housing prices.