Economists have highlighted that the surge in housing inflation over the past year may be attributed not only to the increased costs of buying or renting homes but also to a significant rise in electricity prices.

One expert explained, “We’re dealing with a persistent housing shortage, low vacancy rates, and rapidly climbing home prices, which are all contributing factors.”

Discussing the situation further, the expert noted, “The CPI, which measures the purchasing of new homes by owner-occupiers, only recently included this month’s data. I believe many first-time homebuyers are opting for established homes rather than new ones.”

The economist added, “While annual growth in rents and purchases by owner-occupiers is currently lower than it was a year ago, monthly changes have remained stable for a while now.”

“It’s a situation that will balance out eventually, but patience is needed,” Mousina remarked to SBS News.

Electricity prices soar

“It will even out, but it will take some time,” Mousina told SBS News.

“The introduction of and then the removal of energy rebates is really what is driving housing inflation,” he said.

Cash rate disappointment

“While the jump in annual electricity and rent inflation was amplified by the timing of government rebates, once you strip out this volatility, it’s clear these essential costs are still climbing.”