We hear a lot these days about the unaffordable nature of Australia’s housing market. Despite wage increases, housing is becoming further and further out of reach for young and upcoming Australians.
To counter this ongoing rise in housing prices, Labor took a policy of changing laws regarding negative gearing to the last election, and has continues to stick by this platform.
Alternatively, the coalition government has been rather lethargic in responding towards this issue, instead placing emphasis on the maintenance of housing prices for middle- class and older Australians.
However, treasurer Scott Morrison did address these problems recently, as he called upon states to remove regulations concerning the development of new land, in order to increase the supply of housing.
But while the positions of these 2 parties certainly have merit, there is one elephant in the room that our political establishment, dares not address.
This taboo subject that only a select few discuss for fear of being racist, is clearly immigration. Since 2006, immigration to Australia has at a minimum maintained above 175 000 people per annum, maxing out at 300 000 in 2009.
The result of this mass immigration is 2-3 million new migrants to Australia, in just 10 years. In other words, our population has increased by 10 % in just 10 years, almost solely on the back of immigration.
Further, we know how migrants trend towards settling in major cities, and all seek whether through renting or buying property, to find a home of their own.
Evidently, this added millions of migrants is placing extra demand on Australian housing, as given migrants compete with locals for properties, the result is a market which often cannot keep up pace.
Therefore, as any beginner economics student would tell you, as demand goes up and supply remains limited, prices go up and such is the case in the Australian housing market.
Sure, other factors such as reducing regulations and potentially changes to negative gearing, may have positive implications for housing affordability in Australia.
Regardless, that our politicians on both sides of the aisle refuse to even say the word ‘immigration’ in debates over housing affordability, demonstrate an undignified yet unwavering moral capitulation, in which servitude to political correctness is prioritized over the concerns of ordinary Australian people.