Federal Election 2022: Another housing ‘solution’ that will drive up prices | swrighteconomy
Almost three years ago to the day, Scott Morrison told first home buyers he was going to give them a go when he announced a “bold” new policy to help them into the property market.
Since mid-2019, the average loan for a first-time buyer in both NSW and Victoria has climbed by $100,000 . Our first-time buyers may be on the ladder but they’re no closer to the top.The reason is simple - both the Coalition and Labor are obsessed with sating demand while ignorant of supply. By intervening in the first time buyers market, the government is setting up a problem for the second-round market.Both the Coalition and Labor could have come up with a policy to pay local councils a “supply increase” bonus for changing planning laws to increase the number of homes available in their areas. It would add to supply, do it at a much lower cost and not have such large flow-on effects in areas such as superannuation.