Australia’s Housing Crisis is Crazy…

Australia's housing crisis has become a hot topic, both locally and internationally. With Australian cities ranking among the most unaffordable globally, it's crucial to understand the underlying issues. The median house prices in Melbourne and Sydney are staggering—9.8 times and 13.8 times the median salary respectively—making homeownership feel like an impossible dream for many. The rental market is equally dire, with intense competition leading to desperate measures from renters just to secure a place. This video dives into the complexities of housing supply and demand, and how just a few issues have now ballooned into a widespread crisis.

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★ ★ CONTENTS ★ ★
0:00 Australia's Housing Crisis
1:45 The Role of Immigration (Demand)
3:30 Tax Breaks for Property Investors (Demand)
6:40 How Zoning Increases House Prices by 40% (Supply)
8:45 The Construction Problem (Supply)
10:30 What's Being Done?

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#HousingCrisis #AustraliaRealEstate

[NewMoneyYouTube]

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[SophiaSchmidt-ww]

Us Aussies are over taxed, over levied, over dutied, over rated, over fined, and yet we are citizens of one of the most beautiful and tourism rich countries, and one of the most resource rich countries. more and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Australians find it tough to own a home too, leaving them without a place to retire.

[IamJonny-ov]

Don't have a job = can't afford housing.
Have a job = can't afford housing.
So why have a job?

[mappv]

In 1990 I bought my house for about 6 months salary. Now it would sell for about 10 years salary.

[luigijohson]

A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won't alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.

[sunrisesunset]

you don't need mass immigration to grow the economy, Australia just needs to put a decent royalty on all its resource exports. a $50 per tonne royalty on iron ore would be $45 billion for last year on 900 million tonnes exported. Same royalties on gas exports as Qatar, producing an additional $84 billion per year. Aust has a $3.5 trillion super industry. Put a percentage of funds into a real estate trunk infrastructure fund for local councils to borrow against and build master planned estates. Sell mass, cheap land lots will help reduce the cost of house and land packages.

[unknown]

Peter Dutton said that young people should " save diligently" to purchase their house.

I have 120k in the bank but banks says my wages as Registered nurse is too low to service the loan..

[musicplayah]

"We have a birth rate problem" "Let's not focus on the underlying reasons for why that is, whether it be culture, economics etc.. it's imperative that we import human beings until all available humanbeings have been imported.. then... yea.."

[MrPandatheman]

Our birth rate would go up if it was more affordable

[highbrand]

Australia has very limited economic complexity beyond flogging natural resources for pennies, promoting education/PR visaa and spruiking the property market. So to keep GDP rising, they bring in more migrants, which leads to GDP per capita, real wages and housing affordability all dropping.

[TheCyberHawk]

Immigration is an issue. It's not the only one but it doesn't make someone inherently racist when they point out that adding 500k migrants when the housing market is already at capacity is going to do real harm.

[Peterl]

I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .

[lastsinnersa]

When you have to be earning 200k to get a home loan for so many houses now (normal, not high end), it is beyond absurd. Adelaide rental rates have somehow gone past Melbourne in recent times. Throw in relatively high food prices, LNG being offshored then bought back, privatised electricity being amongst the most expensive in the world - why would the next gen think they can make it? Why would they have families?

[ryanp]

As someone who works in construction in Melbourne there’s a huge elephant in the room regarding the Australian governments housing targets… skilled and qualified trades are by and large not interested in new home builds - there’s better economic opportunity on government projects or other types of work. The flow on effect is the quality of tradesman on new home builds and therefore the workmanship has become diabolical. Also for private developers to turn a profit, all sorts of corners are cut and blind eyes are turned. So not only can we not build enough new dwellings, generally speaking the quality of the product is absolutely shite.. all while consumers are paying insane prices for said product. I’ve literally witnessed a “bricklayer” (a labourer, unqualified) lay bricks whilst his 10 year old son mixed mortar and his 7 year old son passed him bricks - all ticked off by the building surveyor of course. When Porter Davis liquidated and it came out that they were only making on average $10k per project at the slab stage, this should’ve been a wake up call for the industry - but it’s only gotten worse since then. Privatisation of the home building industry is a race to the bottom where no one wins.

[byron_glover]

Reduce immigration, implement federal zoning laws and build more social housing, problem solved. The majority of Australian voters own a home and thus do not want the housing crisis to be solved.

[rchin]

Birth rate will remain low if you can't have a house to live with your family.

[eeroala]

If only Australia had more land, they would be able to solve their housing crisis.

[robdoherty]

Imagine identifying that the government is the cause of a problem and then thinking the government is the solution 😂

[TheDessertWarrior]

I find it surprising that there is no mention of money supply and interest rates. Arguably bigger factors than any discussed here. Borrowing at 1-2% interest is an insane incentive for speculative growth. That growth can then be borrowed against to buy more houses.

[roeyaus]

“It’s important that australia keeps mass immigration high “
Stopped listening, unsubscribed .
You can’t be serious, even after seeing everything it’s doing to Canada, the UK, Ireland and the rest of the developed world, you still support mass(!!) immigration you are truly out of touch with reality