Write a policy oriented report on the following issue:

[Housing affordability has been a widely discussed issue in the recent past. Many reports show that new home buyers are finding it more and more difficult to buy their first home in bigger cities because the house/property prices in these cities (Sydney and Melbourne in particular), have gone up significantly. Recent media reports suggest that property prices in Sydney has increased by about 30% over the last two years. Rising property prices and declining housing affordability has become a worrying issue to policy makers as well as to politicians].
 
 What is your understanding and analysis on the above issue?

Conduct necessary research and write a report on this issue. Your report must include at least the following main sections:

(i) Introduction
 (ii) Analysis (this section needs to be supported by your understanding of economic theory/concepts)
 (iii) Conclusions and Recommendations.