The real estate boom has peaked, and house prices have begun to slide in Sydney and Melbourne, but the declines so far are no match for the gains of previous years. We’d better hope it stays that way, because the only thing that will really bring house prices down sharply is a deep recession and mass unemployment. Barbecue-stopping debates about whether we, or our kids, will ever be able to afford to buy a home look set to continue.

Encouraged by the generous tax treatment of residential property, our relentless pursuit of the great Australian dream is creating an increasingly unequal society. Credit:Peter Rae

Yet this is not the real locus of our housing crisis. The real crisis is a lack of affordable rental accommodation for people on low incomes.

One in every two low-income households renting in the private market is in housing stress. That is about 600,000 households spending at least 30 per cent of their disposable income, and often much more, on rent. As a result, they may skimp on essentials such as food, heating or healthcare.

Renting today is far more than a temporary stepping stone. The private rental sector is the fastest growing segment of Australian housing. There are more people renting in middle age, more households who have been renting for longer than 10 years and more renters with young families. Yet there are not enough affordable rental properties to go around.