Housing affordability is shaping up as a major topic as we head toward the next federal election. The numbers are staggering. Ten years ago, the median house price in Sydney was $880,000, and in Melbourne it was $630,000. Today, those figures are $1.7 million and $1.2 million, respectively. This equates to an annual increase of 7.93 per cent for Sydney and 6.8 per cent for Melbourne.

Meanwhile, wages have not kept pace. Over the last decade, gross income growth has averaged just 2.18 per cent per year for Sydney and 2.03 per cent for Melbourne. This disparity is continuously widening the gap between the haves and the have nots.

As houses become increasingly unaffordable, using superannuation in a sensible way is an appealing option.Credit: Nic Walker

The solution is complex, as numerous factors are contributing to the problem. Some of the key factors are a migration surge that put pressure on rental accommodation, a growing shortage of skilled labour and materials, and militant unions forcing up costs.

Yet another hurdle is mortgage insurance, which is required for buyers with less than a 20 per cent deposit. For example, analysis from Mozo shows that if you bought an $850,000 property with a 5........

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