Housing affordability won't be greatly improved just by less regulation, more supply, RBA argues
ABCAn at-times-testy debate took place at a committee hearing into why Australia has such unaffordable housing and what to do about it. "In Australia, additions to the housing stock have run ahead of population growth for a number of years," Dr Ellis said in her opening statement. "There are no examples, internationally, of large falls in nominal housing prices that have occurred, other than through significant reduction in capacity to pay, such as a recession and high unemployment," Dr Ellis argued. "The combination of negative gearing with concessional capital gains means that it is very attractive to leverage into investor property," Dr Ellis observed. The one area of consensus was that Australia's housing market cannot continue as it is, where, as Dr Ellis observed, "the children of people who own homes can end up relatively easily becoming home owners, people whose parents rented are going to be in a much more difficult situation".
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