One Factor Politicians Agree On: Greater Home Costs

Late last year, I attacked Labor housing minister Clare O’Neil for stating that Labor wanted house prices to rise at a “sustainable” rate.

There you have it.

The Albanese government does not want housing prices to fall at all.

Source: https://t.co/EmndvZlkhg pic.twitter.com/ZDqYVsvU13

— Tarric Brooker aka Avid Commentator 🇦🇺 (@AvidCommentator) December 10, 2024

On Monday, Opposition leader Peter Dutton repeated the line, saying that the Coalition wants to see house prices “steadily increase”.

When asked on Monday if he wanted house prices to go up or down, Mr Dutton replied: “I want to see them steadily increase”.

“I don’t wish to see a scenario the place Labor crashes the economic system and someone who’s paid $750,000 for a home at the moment is price $600,000 in 18 months’ time underneath an Albanese authorities”.

“That may be a catastrophe”.

“Folks will likely be sitting on a home that’s price lower than what their mortgage is”.

Peter Dutton then wheeled out his 20-year previous son, Harry, who complained that his technology can not afford to purchase a home.

“I’m saving up for a home and so is my sister and a number of my mates however it’s virtually inconceivable to get within the present state”, Harry Dutton informed reporters on Monday.

“We’re saving like mad however it doesn’t look significantly better within the close to future”.

Requested straight on Monday if he needed home costs to drop, Prime Minister Anthony Albanese stated: “Look, traditionally in Australia … costs are likely to rise”.

“What we wish to do is to make it possible for individuals have accessibility for residence possession”.

You probably have ever puzzled why Australia’s politicians regularly implement self-defeating insurance policies like residence purchaser subsidies, mortgage subsidies, tax breaks, and different demand-side measures, look no additional than the above feedback from Labor and the Coalition.

Neither aspect genuinely needs to “remedy” the housing affordability disaster as a result of that may require costs and rents to fall.

So, they proceed to fake to care about affordability whereas they introduce ever extra elaborate schemes to drive costs greater.

In the meantime, they refuse to implement the one coverage that may decrease rents and residential costs with out costing the taxpayer a cent: slashing immigration to beneath 120,000 a yr.

Slashing immigration would have a profound affect on the housing market.

First, it could remedy the housing scarcity as a result of provide would rapidly meet up with demand.

Second, it could decrease rents, which might profit tenants straight. First residence patrons would additionally profit from decrease rents, as it could make it simpler to avoid wasting for a deposit.

Third, decrease immigration would put some downward strain on costs, making it simpler to purchase.

Fourth, decrease immigration wouldn’t price taxpayers a cent, in contrast to the demand-side insurance policies promised by each side over the weekend.

Lastly, decrease immigration would additionally stop our cities from turning into overcrowded and stop future Australians from having to dwell in high-rise shoebox flats.

Sadly, neither aspect will act in the very best pursuits of Australians. The one factor they agree on is the necessity to drive residence costs greater.

Source link