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by stephen_g
3455 days ago
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Insane tax breaks yes, but in general there is not limited supply. Rental vacancy rates are rising, rental yields are dropping, which would indicate that we have more than enough housing for the number of people in the country. Further, a group called LF economics did a study on this - some graphs on page 22 here - http://www.aph.gov.au/DocumentStore.ashx?id=cafe7b04-e06c-4e... (PDF warning - it's a submission to the recent enquiry on house prices). Turns out that they found most Australian markets are in oversupply at the moment. They also found no correlation between supply and prices over the last 30 years, and have some points in there for why that would be the case. In the end, it's more the availability of credit that determines the prices, not supply and demand. |
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