Why Australia’s Housing Crisis Is a Warning for the World

It’s getting harder than ever to find a home in Australia with less than 1% of rental properties available for occupancy. That’s sending rents soaring to eye-watering levels, deepening a cost-of-living crunch.

The population growth of Greater Sydney is also exacerbating its lack of housing supply. Here’s how the housing market’s “vicious spiral” is dragging the country into a deeper crisis. Bloomberg's Kurumi Mori reports.

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[DonaldMark-nese]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[zwatwashdc]

It’s almost like real estate agents and politicians who bought their houses 20 years ago are in charge of housing policy.

[Umtree]

I saw an interview with one of Australia’s Politicians in charge of “solving this crisis”.
She owns 7 investment properties.
…. Let that sink in.

[NicholasBall]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[hasher]

I live in Sydney and this is what the video doesn't tell you.

1. The older generations created policies and laws to protect their homes and investments. unlimited negative gearing
2. Overseas investors can buy Australian land, alot of overseas investors don't rent out their properties making it vacant.
3. There are approx 160, 00k vacant homes in Sydney alone, the government NEEDS to look at these homes and see which ones CAN be rented out
4. Homes should be a necessity and not for capitalism greed. An individual should only have one investment, and companies and corporations shouldn't be allowed to buy so much land and monopolize looking at you Woolworths and Coles
5. AirBNB should be heavily regulated.

These politicians do NOT tackle the root causes but instead they keep creating bandaid fixes and money does not solve everything, throwing money to everyone increases

The reason why policies and laws don't tackle the root cause is because it protects the politicians pockets.

[roxannesmith]

This is what happens when housing is considered an investment and not accommodation.

[kaylat]

This administration is putting many families in difficult situations. A lot of people are financially struggling to live, put a roof over their head and put food on the table. Things are getting worse these days, if you don't find means of multiplying your money you might wake up a day to realise you didn't plan well for yourself and family…

[ethandaniel]

In 2018/2019, I left my management consulting job in Mumbai and relocated to Sydney, Australia, with my husband, who had already secured a position in the tech sector there. Housing costs have become exorbitant, groceries are becoming more expensive, and rent prices are on the rise, causing me to reconsider my decision four years later. What can I do differently at this point? Making ends meet has proven to be quite challenging.

[MrBobbyBrown]

You could have switched out Australia with Canada in this video and not changed a single other thing. This is EXACTLY what's happening in Canada right now, and it's absolutely brutal. The younger generation will never be able to afford a home, and almost all of them can't even afford to move out on their own and will live with their parents for potentially at least a decade. Even people in their 30's are screwed, and especially anyone that is single. Canada as a country is sinking, fast.

[Sagealeena]

Only 13% of houses sold in Australia in 2023 were considered affordable, the lowest since the people doing the study (PropTrack) started keeping records. Too much of our economy is reliant on the housing market, and so it’s literally killing other parts of the economy and so many people struggle to have somewhere to live

[elimead]

Love how the Politicians and Estate agents talk about it like it was an uncontrollable mistake, all while flashing a Rolex. This is no mistake. Soon everything will be by subscription, we will... "own nothing, and be happy".

[Mattb]

I had a workmate ask me how much my house would sell for and when I told him he basically congratulated me. House prices seem to excite so many Aussies. It’s strange. A high home value doesn’t make me rich because if I sell I still have to pay a high price for the next one.

I think having so much money tied up in housing is bad for the economy.

[hazelem]

Looking for a rental is the most exhausting, stressful mentally challenging thing I have ever experienced. That includes a divorce and changing countries.

[Steve-kkyb]

Housing affordability here in Australia is a crime, there is not other definition for it, it needs to be investigated and people in charge of policy (over the last 20 years) need to be prosecuted/jailed.

[Emily-leop]

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. Sure I'm not alone in my chain of thoughts.

[GierlangBhaktiPutra]

Australia and Canada having housing crises is one of the most ridiculous thing I have ever heard. They have fewer populations, more vacant homes, and more land than countries like Indonesia. Yet they manage to create artificial scarcity of housings.

[MrZoomah]

I love how they conveniently left out the market manipulation policies that drove up house prices and benefited the wealthy.

[debbieanne]

Used to be the Australian dream to buy a house. Now it's to rent an affordable property 😢

[FelineAirstrip]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio of about $120K against crisis. What risk management strategies are suggested to navigate the market

[EE-ujtw]

I am Australian and I am “technically” homeless.
My rent went from $560 to $900 a WEEK.
I live in a storeroom.
No cooking facilities, shower at a gym, wash my clothes at a laundrymat.
My lease was close to ending and I was told to “get out the students are coming and they’ll pay that”
I’m too old for the 20 year olds wanting a flat mate and too young for retirement place.
Tomorrow I’ll inspect a small closet with a single bed for $300 but I know the line will be around the block.
I hate life right now.