Australian Housing is More Expensive Than the US! What's Causing it?

The global housing crisis is making headlines, and one of the most striking comparisons is between Australia and the United States. In this video, we dive deep into why Australian housing is more expensive than in the US, exploring the supply and demand factors that have driven up property prices to unprecedented levels. From the impact of supply shortages, population growth, and foreign investment to the role of government policies and economic conditions, we break down the complex web of issues that are causing this disparity.

But the story doesn’t stop there. We also look at how this phenomenon fits into the bigger picture of the global housing crisis, affecting millions of people worldwide. Whether you're an investor, a homeowner, or someone trying to enter the housing market, understanding these dynamics is crucial.

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Chapters
00:00 Intro
00:28 How is Housing Affordability measured?
01:01 Global Housing Affordability Ranking
03:48 Australian Housing Market
05:23 US Housing Market
06:25 Why is Australian housing more expensive?
06:49 Australian Housing Supply
08:44 Australian Housing Demand
13:25 Supply-Demand Recap

[aap]

biggest difference between Aus an USA is that in USA they still have affordable cities in Aus we use to have Adelaide and Perth, now we have none. also politicians in Aus own too many investment properties so they wont change the status quo.

[SickocrowAU]

Net importation of people into the country. Massive donations by property developers to BOTH parties, so both parties are quite happy to keep the bubble going. I guarantee you'll find most politicians are also landlords.

[roughead]

This report is way out of date, 2024 report will probably show all 5 capital cities being impossibly unaffordable. Perth prices have increased 30%+ in the last 12 months.

[fatwombat]

We recently saw how labor bent over for the gambling industry. So they certainly wont do anything about real estate. The population is also booming so I think the real este ponzi will continue.

[mangoman]

Supply and demand is not only about the houses themselves but also the materials and labour to build them. If houses cost more to build then they need to sell at a higher price to justify the investment and risk in building, if they dont then investors will build less houses until the price justifies the risk. Its a vicious circle, higher pay = materials cost more = houses cost more = people demand higher pay to they can afford the house.

[hobaho]

Negative gearing & discounted capital gains. Solution: Put a dollar limit cap on the amount of negative gearing available to a taxpayer. Same for discounted capital gains.

[mitchycarp]

It is Australian government policy to not let house prices drop. They do this by allowing an annual Canberra size population immigration, and know there will not enough housing supply to allow for this thus an increase in demand and higher housing prices. I'm not against immigration but it needs to be lowered because of the housing supply problem

Also inflation is not calculated high enough as house prices are purposely not given the required weight on inflation, and if it was, inflation would be much higher as it should be, and thus increasing interest rates, and that would have a downward effect on housing prices, but the government purposely downgrade the weight with housing prices from inflation data.

In summation the Australian government do not care about the next generation, . It's all about increasing revenue from higher house prices.

[pantsgaming]

The thing with Singapore is that the government housing isn't very nice. Also Sydney is a dump as is Melbourne if you do move to aus all the other major cities are way better and cheaper.

[mariabonita]

Could you please make a video on how minimum wage earners can retire without depending on Centrelink? Thank you.

[BobbyGriffin-urik]

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[republicaninfidel]

Immigration obviously

Same in Ireland