Housing affordability

[SirRumpole]

The RBA issued a research paper on housing and the rentl crisis.
In what will come as no great surprise to many, it concludes that excessive popu;ation growth is behind it.
from Macro business
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In my humble opinion, the housing crisis is the way it is because the market is dominated by people who want to make the most money they can.

Investors, developers , real estate agents, banks, building companies et al all want the maximum profits and the consumer (home buyers and renters) are the ones who pay the price.

So the only way to moderate the situation is with the entry into the market of people who care less about making money, and more about solving problems and that basically means government whether local , state or federal.

Bring back the Housing Commissions of old to provide entry level accommodation to set people up while they increase their education and experience and move on to better jobs and better pay and can afford more up market housing.

 

[wayneL]

Overheads always a killer.
Housing having to support Banks via mortgage interest rates, local Government in the form of rates , State Governments in the form of stamp duty on sales, and of course the huge number of real estate agents that need to be kept.
Mick

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Wow that RE agents per 1000 dwellings figure is illuminating.

I wonder what the comparative turnover of properties is?

 

[Smurf1976]

Bring back the Housing Commissions of old to provide entry level accommodation

Also a good opportunity for trades training.

 

[mullokintyre]

In 1990, we were approaching the era of 17% house mortgage rates.
Mick

now compare the above with this one.
This is the percentage of averge earnings that went into paying the mortgages of 1990 versus today.
Not a lot of difference here folks, except of course the tax rates on the average full time time earnings are tad higher.
Mick