If asset price bubble continues to be artificially inflated, they not only take the affordability of owning a house out of the reach of many of our citizens, they potentially can lead to unsustainable debt levels particularly if incomes drop with flow on effects to the quality of loans of financial institutions. The Reserve Bank is monitoring the situation closely.
Studies also suggest that financial and jobrelated hardships can have lasting effects on households’ mental health. See, e.g., M. K. Forbes and R. F. Krueger, “The Great Recession and Mental Health in the United States,” Clinical Psychological Science 7, no. 5 (July 2019): 900–913.