31 Aug House Demand to Outstrip Supply
Ongoing population growth and constraints on building new homes means housing demand is set to outstrip supply in major cities for the next 40 years, the Committee for Economic Development of Australia report has found.
Research and policy chairman Professor Rodney Maddock says the debate on housing affordability often centred on foreign investment, negative gearing and interest rates, but the issue is far more complex. He says price boom in the biggest cities has been driven primarily by supply and demand issues.
Prolonged housing affordability issues will see some people entering retirement without owning their home and low socio-economic households pushed to outer areas where transport infrastructure is poor and job prospects are lower, he says.
The report calls for a raft of new measures, including the replacement of stamp duty with a land tax, lifting capital gains tax and improved protection for renters.