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Australia’s housing affordability challenge is fundamentally the result of a persistent mismatch between strong underlying demand and chronically constrained supply. Planning systems, land availability, infrastructure charging and construction costs are widely recognised as the primary constraints on new housing delivery. By contrast, the role of housing finance settings, particularly macroprudential regulation, has received comparatively limited scrutiny.
The RBA’s decision this week following the recent resurgence of inflation highlights the dangerous dichotomy of Australia’s economy: households and businesses vs government.
Australia’s housing affordability challenge is fundamentally the result of a persistent mismatch between strong underlying demand and chronically constrained supply. Planning systems, land availability, infrastructure charging and construction costs are widely recognised as the primary constraints on new housing delivery. By contrast, the role of housing finance settings, particularly macroprudential regulation, has received comparatively limited scrutiny.
Australia does need more social housing.