As demand grows for real estate and housing prices rise, more people are being priced out of the market. Government intervention is needed to produce affordable housing and control speculation.
Sub-2% mortgages are a thing of the past. The Reserve Bank’s governor has signalled variable rates will rise sooner than previously expected, but says he doesn’t expect it in 2022.
Martien Lubberink, Te Herenga Waka — Victoria University of Wellington
New Zealand’s financial system is sound but still vulnerable, according to the Reserve Bank. But without better evidence there’s too much room for fear-mongering and confusion.
The fallout from COVID-19 for housing and homelessness just adds to the urgency of fixing the long-standing ills of the housing market. The well-being of Australia’s economy and people depends on it.
Buyers and renters are very rarely told the energy rating of housing, but don’t blame the agents. As it’s voluntary for existing homes, very few are rated, so it’s not a big factor in the market.
Voters who own housing are strongly invested in increasing the value of their wealth-generating assets. And they strongly favour the Coalition, which knows to protect their interests.
Ilan Wiesel, The University of Melbourne; Liss Ralston, Swinburne University of Technology, and Wendy Stone, Swinburne University of Technology
You’d think falling housing prices might help people on low incomes, but history shows downturns often increase inequality. And many buyers who took out big loans during the housing boom are at risk.
The pandemic has brought to a head deep-rooted problems with how housing is provided in Australia. Fortunately, the solutions can play a central role in the national recovery process.
Buyers pay more for a home they know has a good energy rating. That’s worth an extra 2.4-9.4% in the only part of Australia where energy ratings must be disclosed at the time of sale.
Sae Chi, The University of Western Australia and Linda Robson, The University of Western Australia
We have learnt to be wary of big data, but it can also be your friend: one platform combines and analyses data about housing, jobs and transport to reveal very useful information about living in Perth.
Housing policy is a stark point of difference at this election. While the government took promising steps to set up social housing finance, it has yet to give any sign it will finish what it started.
Housing markets never have met the lowest-income households’ needs. Now is the time to tackle problems that have been years in the making by creating a better system to supply their housing.
The problems with housing systems in Australia and similar countries run deep. Solutions depend on a fundamental rethink of our approach to housing and its central place in our lives and the economy.
It’s natural to assume that a downturn in the property market is good news for people who’ve been priced out of the market. In practice, they might still not be able to buy a home.