Joe Flood from affordable housing provider, Community Housing Limited, has argued that boosting housing supply does not lead to lower prices, citing house price and new home approval figures for 2016. According to Flood, new home commencements rose by 14,000 in 2016, but house prices showed no sign of falling, particularly in Sydney and Melbourne. From The AFR:
…increasing supply on the eastern seaboard is the preferred argument of the property industry and policymakers, but it has not worked, Dr Flood told the Australian Conference of Economists last week.
