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That perspective makes sense in America where there is a strong supply response to increasing prices. In America, enough housing physically exists such that, i

That perspective makes sense in America where there is a strong supply response to increasing prices. In America, enough housing physically exists such that, it's typically just a matter of price. In Australia, the population increased so suddenly after covid, that we just haven't been able to build enough houses quick enough to stop homelessness. For context, at current occupancy rates, our housing industry is building enough new homes for about 240,000 additional people per year, but our net migration is about 600,000 per year. Unlike in America, most of our homeless population does have full time jobs, it's just that there are hundreds of people applying for every available property which means it often takes many months to secure one. Prices are increasing, and will eventually find a new higher equilibrium, but it's going to take years to build enough housing to solve our homelessness problems.

cpncrunch 2y ago
>For context, at current occupancy rates, our housing industry is building enough new homes for about 240,000 additional people per year, but our net migration is about 600,000 per year. That is certainly a problem that needs to be fixed, but my point was just that housing is not unaffordable at the moment. >there are hundreds of people applying for every available property which means it often takes many months to secure one. I find that hard to believe in general. If that was the case then prices would simply increase to match demand. You will always get news stories like this, but it doesn't apply to all properties. Probably just subsidized rent, or underpriced ones. If you go for the slightly overpriced properties, I'm guessing you won't have to compete with hundreds of buyers.