In his essay titled “Housing: an essay on current affairs”, Alan Kohler presents an incisive analysis of the situation in the Australian housing market.
He begins by drawing on multiple sources of evidence to demonstrate the increasing unaffordability of housing, both at the purchase and rental levels.
He then goes on to discuss the drivers of this, including foreign investment and inadequate investment in infrastructure and public housing, as well as low wages growth.
Kohler proceeds to provide thoughtful insight into areas such as supply in the face of growing demand, population growth, planning regulations, and government policies, both existing and potential.
He does this in the context of how these all affect affordability and the financial impact they can have on families, businesses, and the economy as a whole.
Kohler then considers the effectiveness of current government programs, such as the First Home Owners Grant, to address the issue.
He presents both pros and cons, noting the impact it has on stimulating the property market while also discussing the risk of distortions in property prices that this can cause.
He concludes his essay with an overview of what solutions are available to address the crisis in this area.
Suggestions include public debate, public housing, making tax policy more neutral, discouraging foreign investment, and increasing investment in infrastructure and services.
Kohler’s essay presents a thorough examination of an issue of great importance to Australians.
By providing understanding on the issue and engaging with the solutions that have been proposed, it provides a valuable contribution to the debate.