About the only person in federal politics that is willing to stand-up on the issue of housing affordability is new Family First senator, Bob Day.
The AFR has revealed that Senator Day is in the process of selling-off his $80 million stake in Homestead Homes and Home Australia – building companies that he founded 40 years ago – so that he can concentrate on politics and attempt to “weaken the political influence of high-density property developers and land developers” who he claims have “created a housing affordability disaster”.
Senator Day met Treasurer Joe Hockey yesterday and voiced his concerns about the generation of young Australians being impacted by harsh employment policies and unaffordable housing:
Day described sections of the property industry as “carpet-bagging, rent-seeking bootleggers” who used political donations to wield influence to restrict land supply and drive up prices of high- and medium-density apartments.
He likened the relationship between the property industry and politics as to the economic theory of the “baptists and bootleggers” of the 1920 Prohibition, in which both groups favour regulation for opposing reasons.
Back in January, Senator Day lodged an eye-opening submission to the Senate standing committee on affordable housing, which dissected the housing affordability issue and provided a range of solutions (see here). Above is also a video interview with Day, aired in April on Business Spectator, which summarises Day’s position on housing.
Regardless of whether you agree fully with Bob Day’s solutions to the housing affordability problem, Australia is very fortunate to have someone in federal parliament that has such a good understanding of Australia’s dysfunctional housing system and genuinely cares about housing policy.
