The article critiques Australia's housing policies for exacerbating the housing crisis rather than alleviating it, highlighting how government incentives increase demand and, in turn, property prices.
In this article, Greg Jericho expresses frustration over Australia's persistent housing crisis and the government’s continued misguided policies. He argues that historical measures such as the capital gains tax discount introduced by John Howard, ongoing negative gearing, and first home buyer grants have primarily inflated demand rather than provided relief. This trend has led to increased competition and, consequently, sky-high property prices, which only worsen the situation for average Australians seeking affordable housing.
Jericho specifically points to a recent policy initiative: the 5% deposit guarantee for first home buyers, which he predicts would not remedy the housing market issues as intended. Instead of alleviating the pressure on first-time buyers, such policies tend to encourage more people to enter the market, thus intensifying competition for properties and driving prices even higher. The recent lending figures indicate that there was a significant uptick in first home buyer loans following the implementation of this policy, which confirms his concerns about its ineffectiveness.
The article highlights the urgent need for a shift in housing policy that genuinely addresses the housing affordability crisis in Australia. Jericho calls for a re-evaluation of strategies that merely promote demand in an already strained market and urges the government to consider more sustainable solutions that could lead to real, long-term benefits for prospective homeowners.
