Treasurer Joe Hockey says he "totally understands" housing in Sydney and Melbourne is expensive, less than 24 hours after denying property was becoming unaffordable and advising first home buyers to "get a good job that pays good money".



But Mr Hockey refused to apologise for his comments and accused his critics of "playing the man". He also denied he was out of touch by recalling how he purchased his first unit when interest rates were higher than their current historic lows.

After a savage backlash to what has been described as his "let them eat cake" moment, the Treasurer appeared on ABC's AM program and then ABC's News Radio station on Wednesday morning to clarify his comments, including his claim that if housing was unaffordable then people would not be buying it.