How Can We Fix Australia’s Housing Crisis? Alan Kohler Weighs In

Australia's housing market is in turmoil, but can it be fixed? In this episode, we sit down with respected financial journalist Alan Kohler to delve into the roots of this ongoing crisis and explore potential solutions.

Alan shares his insights on why first-time home buyers today face far greater challenges than those in previous generations and how the housing sector has become a critical pillar of Australia's economy, unlike in many other nations.

We also dive into Alan's provocative assertion that housing wealth is both “meaningless and destructive.” What does he mean by this? How can something that seems so vital to our financial security be harmful in the long run? Alan unpacks a fresh perspective on the true cost of our housing obsession.

His unique take on the interplay between housing and the economy provides valuable insights for anyone concerned about the future of homeownership and economic stability in Australia. This episode is essential listening for those looking to understand the broader implications of our housing policies and what changes are needed to secure a more equitable future. So tune in now!

Episode Highlights:

00:00 - Introduction
01:05 - Who is Alan Kohler
01:35 - Has alan shifted his stance on the housing affordability issue?
04:32 - The societal impact of high house prices on the market
14:11 - How are zoning changes impacting the marginal buyer in real estate?
18:18 - Will setting development targets & rezoning lands be enough to address housing needs
24:17 - Is the current housing allocation system inefficient?
26:47 - Is it easier for politicians to pass policies for investors rather than homeowners?
30:56 - Do recent tenancy reforms fail to balance support for tenants and landlord flexibility?
35:40 - Is investing in property part of the Australian national psyche?
38:51 - How Alan's research impacted his perspective on future growth or risks
43:18 - Why encourage build-to-rent over build-to-sell?
47:24 - Is there a relationship between the lack of a recession and house price growth?
53:37 - Housing wealth is both “meaningless and destructive”
55:32 - Alan Kohler’s property dumbo

About Our Guest:

➩ Alan Kohler is one of Australia's most experienced commentators and journalists, a television personality, and a former newspaper editor. He is the former editor of The Australian Financial Review and The Age, and was business and economics editor of The 7.30 Report. In addition to being CEO of Eureka Report and Business Spectator, Alan is the finance presenter on ABC News and host of Inside Business on ABC TV.

Resources:

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[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.

[ideaWorld]

The host said she doesn't want her house value to go down, but wants her kids to be able to afford a house. There is the entire story. You cant have it both ways lady! Either you keep your inflated nest egg as is, or your children (and Australias children) can have a better future by having affordable housing choice. I know which I chose- the younger generations should come first! (And i say this as a home owner. But i own just 1 home, and its the one i live it. Owning more than that in this kind of market is immoral).

[dustingoldsworthy]

Alan is very genuine and its sad to see him speaking such honesty and respect for the betterment of Australia in contrast to these vultures that would break the backs of Australia's future generations just to make a more $$$

[niceworkabc]

Halting immigration until housing catches up would be a good first step.
Importing 1.2 million people within a 2 year period into a country with a housing crisis is asking for trouble.

[tahliamobile]

My cousin bought a home on the Gold coast for $480k just before covid. 3 years later it was worth at least $1.2 million. That's an increase of over $5000 a week.
What job has pay rises that keep up with that sort of increase?

[stevenmitchell]

The obsession with property sees our banks only lend for property. So new business ventures can't access capital, regardless of interest rates. Makes for a dumb, unproductive economy.

[claycameron]

I love the comment from Alan about investing in companies as opposed to housing.
As Australians as obsessed with investment properties the more we have funded these unproductive investments. The only jobs they provided are of real estate agents like these two, buyers agents. They aren’t investing in companies that try to improve society at all, no medical discoveries, technological advances.

So here we are stuck with a bunch of have’s and have not’s and the haves just hoarding wealth in unproductive assets that aren’t beneficial for society or the next generation.

[predrinkking]

I own my house and I wish it dropped 50%. it would be better for society and banks will finally learn their lesson

[callofduty]

The two host have no interest in house prices being more affordable just like most Australians. The new Australia is every man for themselves.

[dianay]

"we want affordable housing, but don't want to see the value of my house drop"
Is she for real? You can't have it both ways! Increasing supply outpaces demand would definitely drop prices. Why do you think the government is bringing so many migrants?
And some of us are not here to buy a mcmansion with cinema room. A lot just want a stock standard 3 bedroom home with a good sized backyard.
These property pundits are so way out of touch, the faster this bubble implodes the better our country will be! But no... They gotta kick the can.
This country's f**ked.

[cameronalexander]

Its a bubble... and bubbles don't deflate, they *pop*

[robb]

GOVERNMENT
That is the problem for housing in Australia.
Labor & Libs are both guilty.
You can talk all you want about rezoning and density this & that, about wages catching up blah, blah, blah.
The Housing Ponzi in Australia will destroy lives if no one works in the interests of the Australian people and their future.
We are a nation of rich & abundant resources that could sustain our collective qualities of life if we had sincere decision makers. But we don't.
MASS IMMIGRATION is, in the current climate, frankly criminal. Our country's riches built on resources does not need more people. More people dilute that wealth. A wealth that is underachieved by a corrupt Government that under taxes and gives away much of Australia's resources with behind door handshakes & golden escalators.
Infrastructure is being stretched. Why the hell are people dying in Ambulances waiting to get into the ER?
- Stop Mass Immigration
- Strangle Airbnb & Stayz to be less attractive than leasing longterm
- Restrict CGT discounts to New Builds Only.
Give us a Government brave enough to work for Australia (not the WEF)

[dustingoldsworthy]

Im a home owner and im sure a ton of home owners like myself would vote for a government that scrapped 50% CGT form the sale of property! and the taxpayer subsidies (negative gearing) that renters pay for to discount for their landlords income!!!

[MrGareth]

Ironic that a show called" Elephant in the room " barely mentions the ACTUAL elephant in the room, which is record levels of immigration. The argument about negative gearing and regulation is just smoke. If local regulation was the cause for local house prices why is EVERY Western nation having the same problem of high house prices?
Elephant in the room indeed.

[warwicksmith]

We should recommence a Housing Commision to develop not for profit.

[L]

If the six story places looked like the ones in Paris, I imagine less people would care. People expect medium to high density Australian buildings to be rubbish cheap and potentially not structurally sound.

[rodgerhempfing]

My parents are both in their, 90's, still going strong.

[actualfacts]

Increasing capital gains tax would discourage people from ever selling the property.

[AUThePunisher]

8% cash rate for 6 months and no Banks bailout would fix this mess in 12 months.

[satwindersaini]

"Abolishing negative gearing, stop home owner and builder grant, reforming capital gains tax, and banning foreign buyers from purchasing residential property while encouraging them to invest in commercial property could help balance the housing market. Providing tax incentives for first-home buyers on their mortgage interest payments for the first ten years (similar to the U.S. housing policy) would promote home ownership, reduce demand for rental properties, and lessen the burden on taxpayers in the form of rental assistance. Additionally, 80% of newly released land should be allocated to first-home buyers."