{"id":31720,"date":"2021-04-14T10:54:51","date_gmt":"2021-04-13T22:54:51","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=31720"},"modified":"2021-04-14T10:54:51","modified_gmt":"2021-04-13T22:54:51","slug":"house-prices-in-australia-are-soaring-but-not-because-there-arent-enough-homes","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/house-prices-in-australia-are-soaring-but-not-because-there-arent-enough-homes\/","title":{"rendered":"House prices in Australia are soaring, but not because there aren’t enough homes"},"content":{"rendered":"

PHOTO: House prices in Australia are soaring again. (<\/cite>ABC Gold Coast: Sarah Cumming\u00a0)<\/cite><\/strong><\/p>\n

It’s tempting to think home prices<\/a> are soaring because there aren’t enough homes.<\/p>\n

But that can’t explain the sudden take-off from about the year 2000, the sudden take-off from about 2013, and again now \u2014\u00a0against expectations<\/a>\u00a0\u2014 the\u00a0stratospheric<\/a>\u00a0take-off in the wake of the COVID recession.<\/p>\n

Broadly, we’ve enough homes. The 2016 census found we had\u00a012 per cent<\/a>\u00a0more dwellings than households, up from\u00a010 per cent<\/a>\u00a0in 2001.<\/p>\n

That’s 12 per cent\u00a0of our houses and apartments empty \u2014 used as holiday homes and second homes, or waiting for tenants.<\/p>\n

If there really weren\u2019t enough homes for people who wanted them, it would be more than property prices soaring; it would be rents.<\/p>\n

Instead, overall rents have been barely moving \u2013 growing even more slowly than wages \u2013 for half a decade.<\/p>\n

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December 2009 = 100. (<\/cite>ABS Wage Price Index; Rent Price Index From Consumer Price Index.)<\/strong><\/em><\/figcaption><\/figure>\n

For the half-decade from 2016, a half-decade in which Australia’s population grew by more than one million, Australian rents barely moved.<\/p>\n

The supply of places to live in has kept pace with the demand for places to live in, but the supply of places to own has not.<\/p>\n

READ MORE VIA ABC<\/a><\/p>\n

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