At the Common Good we try to be generous in our judgements and optimistic in our outlook.

On housing our hope has turned to cynicism.

Since we published our first article on house prices in 2021, houses have risen a further 26% (this is a total of 43% on pre-pandemic levels).

Why hasn’t this issue been fixed? Why has it been made worse? 

Quite simply,  Neither the Coalition or the ALP want to fix it. Both parties want high house prices.

With 60% of Australians being home owners, both parties expect that house prices dropping would lose them an election and thus are committed to high house prices. 

Both parties theoretically care about affordable housing, but only on the condition that house prices don’t fall. 

What is the result of this contradiction? 

Lip service to affordable housing, acting like they care, and policy announcements that look like they will address the issue, but won’t.

The result is to make housing “affordable” by adding to demand and giving a few first home buyers more access to debt, grants, super, or shared equity schemes. This increase of demand then pours fuel on the dumpster fire that is Australian house prices and policy. 

Both the ALP and coalitions are giving us more of this garbage this election. 

Our politicians aren’t stupid. They know what the impact of their policies will be. They lack the moral fortitude to attempt to fix this generational crisis. 

The solution to affordable housing is simple economics:

Increase supply, decrease demand.