Housing costs are important determinants of many individual and household decisions. This paper reviews the housing cost data available in Australia, and derives and presents series of real price indexes for 1979-92 and real rent indexes for 1980-92 for most of the capital cities. It also shows how the costs of owning and renting can be compared. Increases in real prices and, more importantly, real interest rates have occurred while real rents have remained stable. Consequently, the annual cost of owning relative to renting has increased dramatically, particularly for younger Australians who have not yet purchased a house.