Fairfax’s Ross Gittins has produced a thinly veiled defence of Australia’s exorbitant housing costs, arguing that housing values are inflated “because Australians have an unusual relationship with their homes”. In making his case, Gittins draws on a recent research report from Saul Eslake, which provided six reasons for Australia’s expensive housing.
Much of the explanation comes from the insights of economic geography, the study of how we’re affected by the spatial dimension of the economy and, in particular, of the way big cities work…
