Senate deliberately ignores choking of land supply

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If you want a concrete example of how Australia’s politicians are delinquent on the issue of housing affordability, look no further than this:

On Wednesday afternoon, backbenchers Barry O’Sullivan, Matthew Canavan and John Williams supported a housing affordability motion from Family First senator Bob Day.

It was defeated 48 votes to 10 with most Government senators, Labor and the Greens voting against it.

WA Liberal Chris Back also crossed the floor…

[The motion]… urged the Senate to condemn “the deliberate restriction of land for new housing and subsequent price gouging by state and territory land management agencies”, and highlight, “the constraints on land supply which are the principal causes of worsening housing affordability”.

So while their counterparts in New Zealand are making concrete efforts to address the land supply constraints that have forced-up the cost of New Zealand homes, Australia’s major political parties continue to deny that the same problem exists.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.