Purpose - Discuss the record on housing affordability in Australia over the period 1985 to 2010, link this with its demand and supply drivers, and comment on government policy responses during the same period. Design/methodology/approach - Descriptive analysis of various measures of affordability using readily available commercial and other information and discussion of the affordability drivers and government responses using recent governmental inquiries into housing affordability. Findings - Housing affordability in Australia has worsened significantly in the past quarter century, including both urban and regional areas, and is now among the world's most unaffordable. The main contributor at the national level has been the escalation of housing prices because of continuing strong demand arising from strong economic and population growth, the availability of cheaper and more accessible finance, and tax and other incentives for home and investor housing ownership. An additional contributor is unresponsive housing supply resulting from an extensive governmental role in land release and zoning, infrastructure charges, and building and environmental regulation. Research limitations/implications - Data used from only one of the three commercial measures of housing affordability currently available. No attempt made to model the relationship between housing affordability and its demand and supply drivers. Practical implications -There is a need to reassess government policy at all levels as it relates to population, economic, urban, and environmental planning and government regulation and taxation and housing affordability. Originality/value - This study provides a complete account of housing affordability and the literature on housing affordability in Australia over the past 25 years.