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The Forum > General Discussion > Housing crisis

Housing crisis

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When it comes to housing crisis, the major political parties do not seem to have any clue of a long term solution. The problem is a demand/supply problem. In a free marker, when demand exceeds supply, no matter how much financial assistance is given to those who cannot afford, there will always be the same proportion of people who miss out. And why would a government try to solve the problem? When housing prices skyrocket, the silly GDP figure will rise, and the government will be able to claim credit for the booming economy.

Rudd's plan to turn parklands into residential areas is a short term one. Packlands near the cities will run out soon, and we need the flora and fauna.

To curb demand, we need to entice people to live farther from the cities. Infrastructures like subway network is called for. We also need to reduce population growth, which is also good for the globe. The welfare system that encourages the poor to have more children needs to be revamped. Baby bonus and Costello's idea of 3 children per family certainly do not help. Intake of migrants to solve labour shortage is also not a good long term policy.

To increase supply, we either need to increase population density in the cities, or build new cities in underdeveloped areas. With good planning, cities with high population density can be efficient, comfortable and environmental friendly. We may just need to adapt to the different lifestyle. To build new cities, I would suggest building one with a special theme like the Silicon Valley or Hollywood. How about Bionic Hill? Australia's biomedical research is world class and most of our Nobel laureates are in that category, but we have been suffering brain drain because of the lack of vision from our polies.

wywong
Posted by wywong, Thursday, 18 October 2007 8:21:33 AM
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Demand and supply - absolutely right. However trying to just "build" another town/city in a deserted part of the bush to accommodate extra people won't work without all the services and facilities that go with an acceptable life style. Just try and get doctors to practice in the country at present. Everyone want social services, entertainment, sport, hospitals, water, sewerage, airports, roads, parks, cinemas, night life, clubs, and so the list goes on. You couldn't build this in 100 years. Population control and more money on education to train the potential that we have already here is the only slow and reasonable answer. The alternative is what we now have, overcrowding, dissatisfaction, high prices, inflation, pollution, shortages of water and power, health problems...........again the list goes on.
Posted by snake, Thursday, 18 October 2007 12:59:56 PM
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I don’t think we should even be considering large-scale decentralisation or the opening up of huge new areas for housing. Urban consolidation yes, with minimal expansion. But the overridingly important thing is to stop population growth dead in its tracks. Let’s wind immigration down to net zero and get rid of that disgusting baby bonus.

It is just absolutely nonsensical to even talk about addressing the housing crisis if we are going to simply accept rapid population growth and only address the supply side of the equation.

And it is just as non sensical to talk about sustainability or meaningful reductions in greenhouse gas emissions or properly addressing all manner of other environmental issues while the number of consumers and polluters continues to rapidly increase.

This is extraordinarily basic…..and yet very few people seem concerned about the push or facilitation, from both the Coalition and Labor, of rapid human expansionism with absolutely no end in sight and not even a thought of there being an end to it.

Why?? ??

What on earth gives?? ??

What is with our incredibly warped collective psyche?? ??
Posted by Ludwig, Thursday, 18 October 2007 4:10:48 PM
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I have to disagree with snake in the time taken to develop a city. Countries like Japan and China were destitute just half a century ago, and now they have megacities with all brand new infrastructure, and population that are comparable to the whole of Australia. Las Vegas, Silicon Valley and our own Canberra were born less than a century ago.

With money (which our government have), it does not take long to build universities and research centres with good facilities. There won't be a lack of students from interstate and overseas who want to study medicine there. With sufficient incentives, quality lecturers and pharmaceutical companies will come, which will be followed by settlers, developers and other businesses.

I agree with snake and Ludwig in that population control is the preferred solution, but I am afraid it is the least likely action taken by any democratic governments in the near future. The ultimate reason is that we human are all selfish. We want to have the prvilege of more kids and the leaders want their countries stronger economically and politically. If we are altrusive, communism will be successful and one-child or two-kids policy will be in place all over the world.

Ironically, the housing affordability crisis seems to be most effective thing that stems our population growth - it encourages emigrants, discourages immigrants, and makes many people put off having kids. Polution may be the next most effective measure - by reducing our fertility!
Posted by wywong, Friday, 19 October 2007 9:49:58 AM
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There is no housing crisis. House prices only go up if people are willing to pay that much for them. It's like you are complaining that we are too rich. There are plenty of cheap houses around. People are just way too picky about where they live. Which is fine, we are all rich. But don't expect the government to buy you a house - that just pushes prices up further.

High prices are a good thing. It means people will not consume so many resources for their home.
Posted by freediver, Friday, 19 October 2007 10:57:27 AM
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Wywong, I don’t think that you should assume that population control “is the least likely action taken by any democratic governments in the near future”.

It really is very easy to implement. All we need is a gearing down of immigration to net zero, over a period of perhaps five years, and the abolition of Costelloism – the paying of large sums to (the bribing of) women to have kids.

Beyond that, we should be right. The natural fertility rate in Australia is a bit below replacement level, so even though the age skew means that the population will still increase with an overall below-replacement fertility rate, it will be a low rate of increase that will level out in two or thee decades.

I think that our society is going to see the imperative of getting Australia off of the continuous growth spiral and onto a real sustainable foundation really soon. And a fundamental part of that is bound to be a demand that population be stabilised, if not reduced by way of reducing immigration to absolute zero and encouraging emigration.

Politicians are going to get blasted with this, just as they have been with concern over climate change. They’ll change their attitude towards rapid unending expansionism. The question is; will it happen before it is essentially too late?

So those who are concerned about housing affordability, and all sorts of other issues, should be pushing hard for population stabilisation, and certainly not just thinking of our current high level of population growth as politically unchallengeable.
Posted by Ludwig, Friday, 19 October 2007 9:34:43 PM
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