Is Increased Housing Supply the Real Solution to this Housing Crisis?
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- čas přidán 16. 06. 2024
- Could increasing housing supply alone effectively address our current affordability challenges, or is the housing crisis more accurately characterised as just a recurring issue with a new label?
In this episode, we sit down with Dr. Cameron Murray, Chief Economist at Fresh Economic Thinking who specialises in property and urban development. We dive into the question of whether the term "crisis" accurately captures the challenges of the housing market, or if it's a situation we've already faced before under different names.
Dr. Murray's new book, "The Great Housing Hijack," takes a critical look at the misconceptions driving up prices for both renters and buyers. We discuss whether simply building more houses is the key to solving the problem, or if there are deeper issues at play that need to be addressed.
We've included a lot of relevant topics in this conversation including zoning changes and alternative solutions to the housing crisis, so tune in to get a clearer picture of the complex issues surrounding these property market issues.
Episode Highlights:
00:00 - Introduction
01:14 - Who is Dr. Cameron Murray?
02:03 - What motivated Cameron to write the book “The Great Housing Hijack”?
06:06 - How do market equilibria affect the perception of a housing crisis?
14:32 - Why zoning changes won’t immediately create a development boom
17:14 - Who can assist with funding for housing development?
23:24 - Why Cameron disagrees with those who cite Auckland as proof that rezoning works
28:23 - Analysing the interplay between human behaviour and housing market trends
34:36 - Cameron shares his thoughts around NIMBY-ism
38:52 - Assessing factors that could stall long-term housing trends
46:24 - Why is the assumption that supply alone can solve the housing crisis flawed?
51:13 - Should public housing be considered as a potential solution for affordability issues?
55:57 - The importance of government action in ensuring access to affordable housing for all
59:29 - Potential strategies for government intervention to address housing affordability issues
1:01:13 - Cameron Murray’s property dumbo
About Our Guest:
➩ Dr. Cameron Murray - Chief Economist at Fresh Economic Thinking who is a leading voice in Australia's housing conversations. He recently authored the book "The Great Housing Hijack." With experience as both a renter, homeowner, and landlord, as well as in property development, Dr. Murray brings a practical understanding to his analysis of housing issues.
Connect with Cameron Murray:
➩ Website www.fresheconomicthinking.com/
➩ LinkedIn / cameron-murray-39b63017
➩ Facebook / fresheconomicthinking
Resources mentioned in this episode:
➩ The Great Housing Hijack: The Hoaxes and Myths Keeping Prices High for Renters and Buyers in Australia www.amazon.com.au/Great-Housi...
Resources:
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What do people consider affordable housing? For me its about 250k, 300k max with a 20% deposit. I make 70k per year. I dont even know how so many people buy housing over 1 million dollars.
By family money
Assuming we are talking about capital markets, they are just a lot of competition from high income earners. A person with median wage cannot afford properties in desirable suburbs. There are plenty of $150k+ /year earners and even them have to pair up as couple to afford properties.
I feel like when Cameron Murray said that people at his seminars never say they are in a housing crisis, it doesn’t reflect the fact that while many don’t feel that are in a crisis, they are still deeply unhappy with the level of housing they are currently able to afford. Someone may have bought a small two bedroom townhouse and not be in a housing crisis, but they are pissed that their kids are having to grow up in a boxy townhouse rather than a modest semi detached place with a back yard. I am not in a housing crisis but it frustrates me the hell out of me how damn expensive decent quality housing is, especially when I compare it to how easy is was to obtain that kind of property for my parents generation. Close to the city, near a train station, with nice parks nearby.
I think those in a housing crises have other problems than attending the seminar.
@@Zilron38Yes that too
I'd suggest that both home owners and renters who are struggling to make ends meet may not have the luxury of attending book tours. And so polling a book tour audience for financial stress may give results that are not in line with the general populace
Exactly what I was thinking!
It's like World Govts want Seniors moving back in with kids to maximise room use in dwellings. Keep hearing economists etc dropping "empty rooms" in their op. eds. Or when discussions at State levels around Seniors/Disabled are causing bed block/long stay in hospitals because "there's nowhere else to be discharged to". Not hearing Govt asking families to have a family conversation yet. They may well have to subsidise some of that perhaps. On incomes going up vs asset prices. We are in last gasp and there is a divergence in wages/salary between private and public sectors. AI etc will chill this drunk party in housing we are having. The earlier any Party says your super or agedcare future is being curtailed the better. Because Banks are still banking on 60 year olds having huge mortgages as investor's or upsizing. Governments need to deal with reality that retirement futures have changed but Banks are still operating like it's the 1970s.
Great content 👍 thank you
Super for house would only work if..
Super for your first house only.
must be your primary residence
Must own for 5 years.
(Can't live in partners house and buy another house with super)
Yes that help the first home buyers. I believe any targeted incentives will help. Like changing stamp duty to landtax wont help because it applies to the whole market right
regional victoria is just starting it property crash, lot of the tree change and 2nd homes bought to get out of Melbourne and in many cases without inspection as buyer locked down. Have and are moving back to the city and with land tax pulling the pin on investment just look at listing levels to population in these smaller towns
Unfortunately the housing supply seems to fall into two categories. Apartment buildings which seem plagued by structural defects and strata management rorts and new suburbs with no public transport, proper sewers and a long drive to the shops. Also no one is going to build and sell a house for less than the going rate. The only solution is for the government to build public housing with rents at a percentage of your wage just like they did once upon a time when housing was not an issue.
What’s the difference between an economist and a chief economist?
Employment title.
one get paid other pretend
@@phoneticau the head dress
And with regards to people putting their hand up as to whether or not they believe they are in a housing crisis! What determines a housing crisis?
I figure that if I’m having to spend more than 50% of my disposable income on shelter, whether I am renting or mortgaged that is still a housing crisis.
If I have less money to be able to spend on other things, that right there is a housing crisis. So pissed off at this guy I mean really really pissed off.
What is he 12?
Except Tokyo where housing is cheap because they allowed high density . More nonsense. The supply is the supply of money from the banks. People will suck up any amount of money the banks will push out. Until the banks get scared and reduce lending nothing will change. Until people accept there is nothing wrong with apartment living our cities can't keep expanding
supply yeah right where are the new 100k ready to start building tradies and material supply chain
Well he does speak a lot nonsense. To claim rents are going up cos of income is just not borne out by the facts. To claim if people have no income they won’t pay just a silly argument. Rent is not food you can forgo. You need a roof over your head weda your income is up or not.
I stopped listening when hearing this guy confused affordable housing with cheaper housing. Affordability is measured by the price relative to the income, not by the price in absolute dollar terms.
Just stumbled across this again after a night of talking with Tom Panos and Mark Bouris. And I’m not going to finish watching it because it will just make me angry.
I just need you guys to tell me that you will shut this guy up ha ha
Just a lot of waffling speak from the guy. Waste of my time I won’t get back
Bloody chief economist! Who the hell named this guy chief economist he barely has facial hair for God sake.