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When the Morrison Government’s HomeBuilder subsidy was announced last year, I argued that land developers would be the major beneficiaries since they would be able to inflate the cost of their house-and-land packages, while also clearing their inventory.
Shortly afterwards, we witnessed developers mark-up the cost of house-and-land packages by the amount of the grant, thus representing a direct transfer from taxpayers to developers.
Today, Dr Cameron Murray has produced data showing the extent to which lot prices inflated following the introduction of HomeBuilder:
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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.
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