Housing in Australia's major cities, particularly Sydney and Melbourne, has become so expensive that many are giving up on their dreams of home ownership.
The main reason for such expensive housing is to do with supply and demand. Many people want to live in the city, but there's only a small trickle of new houses being built.
The fact that housing is expensive also means that building new housing is highly profitable. So why the lack of new houses? The problem is that government regulation, particularly zoning and planning regulation, artificially restricts the supply of new housing.
First home buyers grants, removal of negative gearing, and rent controls do nothing to increase the overall supply of housing.Share on Facebook Share on Twitter
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