Australia's Housing Crisis: What I Learnt From 100+ Hours of Research

🔗Is it time to give up on the Australian dream of homeownership?

Buying a home has become unattainable for many everyday Australians, but how did we get here?

In this video, we’ll be taking a deep dive into the 8 key reasons behind Australia’s housing affordability crisis, backed by 100+ hours extensive research, evidence and data.

To paint the full picture, we’ll be covering all aspects of the housing crisis, from government policies, immigration and interest rate fluctuations, to lifestyle choices, land shortages and construction costs.

Chapters:
00:00 - Changes in Australian Homeownership Statistics
01:38 - The 8-Part Demand & Supply Framework
02:55 - Reason 1: Low Interest Rates
05:50 - Reason 2: Shortage of Well-Located Land
06:54 - Reason 3: Lifestyle Choices
09:05 - Reason 4: Planning Restrictions
11:05 - Reason 5: Immigration
13:43 - Reason 6: Taxes
14:48 - Reason 7: Construction Costs
16:29 - Reason 8: High Interest Rates
17:20 - 3 Reasons Why House Prices Are Not Lower
18:13 - Final Thoughts on Australia’s Housing Affordability Crisis

Please get in touch with us if you need more detailed advice. Find our contact details below 👇

Download our FREE e-book on "Buying Your Next Home" in which we unpack the decision-making process from a finance perspective for anyone looking to buy their next home. Follow this link to download this guide, obligation free:

____________

SF Capital is an award-winning Mortgage Broker firm that specialises in servicing goal-driven professionals, business owners and property investors.

Contact us at:
[phone]

____________

DISCLAIMER:
This video is for informational purposes only and should not be considered financial, legal or tax advice. This video does not take into consideration your personal circumstances. Consult with a qualified financial planner, tax advisor or legal consultant for tailored advice.

[MattsMkia]

Housing crisis, health crisis, cost of living crisis, debt crisis, inflation crisis, EU war crisis, middle East crisis, bank crisis, retirement crisis. How many crises can a koala bear?

[scottcox]

If you want to help housing in this country.
Scrap negative gearing.
Scrap short stay accommodation.
Scrap foreign property ownership.
Stop importing so many people.

[hub]

I am an architect and I must say I agree with the bottlenecks for planning. If I am approached by a landowner wanting to put multiple dwellings on their land (eg. a set of small apartments) I immediately say: We can submit the Planning Approval next month for you, but it would take 1 - 2 years before you get approval, let alone build it. That's how long it takes. It takes about 2 - 3 months for it to even to be allocated to a local Planning Officer, 2 - 3 months for referring it to other departments in council, 1 - 2 months for advertising to residents for feedback, 6- 12 months of DRP / DRC meetings, then 1 - 3 months for "it's on my supervisors desk waiting for their signature". After all this time, the development becomes unfeasible and the project is scrapped, which is what happens to about 60 - 75% of developments. The remainder are only if the landowner really really pushes it and maintains enthusiasm over the years.

[Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[natejames]

I returned to Australia in 2022 after 13 yrs away, and I'm shocked at the cost of living here now, especially what's happened to the cost of housing. I'm lucky enough to own land but would never be able to afford to build on it if I had to rent a place while trying to save. As a single person with no kids and a love of travel, I've chosen to travel Australia in a van, working, saving, and enjoying life. This country has gone mad in many ways. I feel sorry for the people trying to keep up with it all.

[Grimjoe]

Housing should never have been allowed to become more then an essential service.. If you own more then 3 houses you are a business and should be treated as such but never will while the average politician owns so many houses.

[nicolasbenson]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[MisterX-ersi]

It's interesting that the reason why I cannot afford a house is my choice of renting a small 2 bedroom unit. Well done Australian goverment, well done.

[bzzzogm]

Agree, the government been saying decentralise for many years, but nothing was done. We need more regional centres. Stop focus on capital cities.

[novocan]

It's also in the Governments best interest to keep prices high as they reap the benefits of taxes on the sale/purchase of a house. This is also the reason why they release limit land

[grandmothergoose]

Given how well this video touches on so many topics and reasons for the housing crisis, I'm actually surprised that it never made any mention of land banking and excessive short-term holiday rentals, even if only to clear the air and get to the reality of how much impact they're having.

[JBLegal]

Looking forward to Part 2, well researched and easy to follow.

[travyse]

Thank you. This is the only well covered explanation of the Australian housing crisis. The Government is ignoring the issue by redirecting public focus to "low impact" government incentive projects while the Australian home owners and want-to-be home owners are oblivious to the underlining core challenges that will affect the every day Aussie and their children's future of home ownership. Thanks again, you did a better expose' than on this main stream media channels. 🥰

[Fantastic_Timez]

At the end of the day, it comes down to the Australian people choosing to see a house as an investment or asset rather than a home or a place to live. As long as people salivate at the thought of properties as "investments", house pricing will forever go up and will remain attainable only to the rich. Remember, the government (no matter which side) is full of landlords and property developers (or connections with said property developers).

[lzppvbp]

Missed a key demand factor, Government handouts starting with GST 1st home owners, then baby bonus ( equaling nearly 3 months maternity leave ) and all the other hand outs to families which all helps indirectly in paying a higher mortgage and rent. Go thru history of all hand outs and see how they match housing spikes. To me it looks created on purpose to benefit the you know whos who created it in the late 1990s.

[lolplays]

At first the government should limit ownership to maximum 2 properties because there are always people who need to rent for various reasons. All owners of more than 2 properties should be forced to sale the rest of the properties and repay collected government Rent Assistance over the years. At this stage owners of multiple properties are the largests recipients of Centrelink's Rent Assistance.

[noelmyaing]

The most well-researched video about this topic by far! Can't wait for part 2!

[Margarinethebutterlover]

Its quite simple. The housing market in Australia is not a free market. A free market would see natural prices derived from supply and demand. But in Australia, you have an incredible amount of government intervention in the way of incentives, be they tax or buyer. And tax after tax.
People who are on welfare get rent assistance. Landlords who own the houses get tax incentives. People who just pay their taxes are getting slammed. People who wiggle out of paying their taxes, are raking it in.
Australia has one one of the most unpopulated land masses in the world, and granted large areas are difficult to develop, Australia still has a massive amount of viable land for housing available, so space is not an issue.
Simply calculate the average build cost and land cost, then refer historically, even over a very short time span like 5 years. You can quickly see we as Australians, as a population are being taken for a ride. Analise the same figures over a longer time period it only becomes more apparent.
My 2 cents:

-Your primary home ( with strict conditions) should be non taxable or council rated.
- Remove negative gearing tax incentives for property. Encourage positive gearing of rental properties.
- Foreign investment for property in Australia should be appropriately taxed, or prohibited in some way.
- Flat tax: Everybody contributes. Whether it be 10%, 20%. But if you earn a dollar everyone has to give back to pay for the "socialist" costs, like healthcare (lol what a joke atm), roads (lol what a joke atm) Fire, Ambulance Police (lol what a joke atm)
A healthy and wealthy society would see the fully employed able to afford the most simple and cheapest housing. But what we are seeing here in Oz is the fully employed and impoverished.

Sort your shit out Australia!

[jjm]

To all the first home buyers I am sympathetic to your cause.
The problem started many years ago when someone thought of the idea of B&B accommodation. There are tons of houses being used for just that. These homes have been taken away from long term and converted to short term accommodation literally taking any chance of buying (first home owner)or renting long term.
It all boils down to investors greed and fear of having to pay their fair share of taxes because they can’t write off expenses against their huge incomes.
If only one home was enough.

[Yanyan-qqpg]

Don't forget that the bricklayers want a decent livable wage for the work they do as well. If they don't get work, they don't get paid either. I can't say anything for other trades, but bricklayers never had superannuation either until the 90s. Most of my family are bricklayers and all build or built very good quality homes, but it's hard on the body, and your physical health is basically done by 40-50. Whereas other people in that age range are better physically. I know the issue is more complex, but getting the tradies is part of it. Also, due to societies shift in favour of more soft work+wanting a decent wage for work, there is a lack of tradesmen and practical workers in general. Just an observation.