You can smell an election coming soon as Australia’s housing minister has declared that the Anthony Albanese government doesn’t want house prices to fall – despite them being very unaffordable for the young.
Clare O’Neil made the admission on Triple J’s youth-orientated Hack program recently, when she was hit with a barrage of questions about the housing market being ‘stacked against young people’.
‘We want to bring house price growth into something sustainable – so we’re not trying to bring down house prices,’ Ms O’Neil said.
That prompted a surprised host David Marchese to ask: ‘Why don’t you want to be seeing house prices drop? ‘If you’re looking to get into the market, if you’re a young person looking at what’s ahead of you, you definitely want to see house prices come down.’
O’Neil rejected the argument – saying ‘That may be the view of young people – it’s not the view of our government,’ she said.
Data keeps rolling out showing how unsustainable the current housing market policy path is, with the Real Estate Institute of Australia (REIA)’s latest Housing Affordability report for the September quarter showed average loan repayments amounted to 48.6 per cent of the median family income of $2501 a week.
This is the greatest proportion since the REIA began monitoring housing affordability in 1996.
Mind you we saw similar political confusion from the UK Deputy Prime Minister and Housing Minister who in a weekend interview managed to say both there was a housing shortage, and no housing shortage, despite high migration in the same interview. Again it shows the political back-flips polys are prepared to do.
For truth though Kudos to Adrian Orr the New Zealand Reserve Bank Governor, who said last week in an interview that the property market was a real mess. Can you imagine the RBA or Senior Politicians in Australia speaking such truth. No, because politics trumps housing policy rationality. High migration wins over bringing prices back under control. And Boomers win over younger Australians again.
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