Supply vs Demand
The results from the recent census and assessment of the number of dwellings show that there is not a housing shortage, instead an oversupply of property. Analysis from demographers shows that we are using existing housing more efficiently with more people living under one roof. Further analysis is necessary for the reasons behind the changing household and living arrangements although it is commonly said that young people are staying home longer with their parents to save for a deposit, especially in cities such as Sydney.
The National Housing Supply Council aim to calculate the demand for housing using current data and historical data showing how people have lived as a proportion of the population want to own a home but there are reasons for holding back. The Government recognises the demand for housing and strives to deliver with home buyer incentives. It is argued that tax reform might be more beneficial to stimulate the housing sector and replace the existing stamp duty tax with a broad based land tax and re consider the capital gains tax exemption.
The crisis is not the shortage of housing, it's the difficulty younger people are experiencing with accessing home ownership. Instead of the current buyer incentives, the Government should consider incentives to help young people with gaining home ownership.
Posted on Thursday, 12 July 2012 by Chadwick Real Estate
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