Monday, February 4, 2008

Housing affordability

Before I go. Pommygranate over at the ALS blog comments on the stupidity of giving tax breaks to help home buyers. All the tax breaks will do is increase demand and push up house prices. The problem is one of supply not demand. Besides making available unwanted Commonwealth land I can't think of anything the federal government can do to increase supply, its really a state government issue.

However I would like to know how much extra regulation, taxes, charges, development restrictions etc are now required compared the the baby boom era of the 1950s and 60s. I'll bet that has a lot to do with it. Considering that people are happy to pay top dollar for homes of that era I'm sceptical current extra cost charges achieve much. Besides increasing the price of real estate that is.

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