Why Australia’s Housing Crisis Is a Warning for the World

It’s getting harder than ever to find a home in Australia with less than 1% of rental properties available for occupancy. That’s sending rents soaring to eye-watering levels, deepening a cost-of-living crunch.
The population growth of Greater Sydney is also exacerbating its lack of housing supply. Here’s how the housing market’s “vicious spiral” is dragging the country into a deeper crisis. Bloomberg's Kurumi Mori reports.
--------
Like this video? Subscribe: kzbin.info?sub_...
Become a Quicktake Member for exclusive perks: kzbin.infojoin
Bloomberg Originals offers bold takes for curious minds on today’s biggest topics. Hosted by experts covering stories you haven’t seen and viewpoints you haven’t heard, you’ll discover cinematic, data-led shows that investigate the intersection of business and culture. Exploring every angle of climate change, technology, finance, sports and beyond, Bloomberg Originals is business as you’ve never seen it.
Subscribe for business news, but not as you've known it: exclusive interviews, fascinating profiles, data-driven analysis, and the latest in tech innovation from around the world.
Visit our partner channel Bloomberg Quicktake for global news and insight in an instant.

[@zwatwashdc]

It’s almost like real estate agents and politicians who bought their houses 20 years ago are in charge of housing policy.

[@Ausf]

Politicians don't care about their own homes, but when the vast majority of voters own their own homes, they aren't going to create policies that would lower their value. REAs don't control supply or demand.

[@dano3952]

Many of those politicians and realestate agents are the ones who own secondary and more Airbnb properties. And then they pretend they will be the ones to clampdown on it.

[@jackjanpour8532]

This is the end of suburb!

[@jameskillu9171]

birds of the air can build their own, without any mortage, but humans cant. This housing crisis is a hoax like climate change. how much does it cost to buy land and build your own,

[@mysty0]

@@Ausf Gen Z outnumber every generation that came before them.. the majority of them looking to enter the Housing Market.. so numbers would favor the politicians who support affordability for the next generation

[@roxannesmith4519]

This is what happens when housing is considered an investment and not accommodation.

[@Rb-cf7rs]

Exactly, houses should be occupied by people. But lately they are being used as gold, silver or any other commodity that it supposed to grow in price.

[@ajs41]

@@Rb-cf7rs Property has always been used in this way, as an investment. The problem is mostly the huge increase in population in English-speaking countries.

[@iuliua]

It's called capitalism

[@Rb-cf7rs]

@@iuliua The problem is not capitalism. It is rather the financial system, which allows money printing and inflation(and speculation about goods that resist it). Socialism, with the same financial system produces even more terrible results like Argentina or Canada in a few years.

[@ax1338]

@@Rb-cf7rs😂 capitalism is that financial system.

[@Mckennie61751]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio of about $120K against crisis. What risk management strategies are suggested to navigate the market

[@louis71350]

Consider diversifying your portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.

[@SageMadsen]

I stopped listening and taking financial advise from these KZbinrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, In reality, all I needed was professional advice.

[@Emmanuel90970]

Please can you leave the info of your lnvestment advsor here? I’m in dire need for one

[@SageMadsen]

*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@TMOC1977]

The people in this comment are scammers!!!

[@NicholasBall130]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[@StacieBMui]

Consider buying stocks when the economy is not doing well, like during a recession. It could be a chance to buy them at a lower price and sell later when prices go up. Just keep in mind, this isn't financial advice, but sometimes it's better than keeping a lot of cash.

[@VictorBiggerstaff]

Considering the increased complexity since the 2008 crash and COVID, I suggest diversifying your financial portfolio. I hired an advisor and successfully grew my portfolio by over $250k during this turbulent market using defensive strategies that protect and profit from market fluctuations.

[@EleanorBaker474]

Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.

[@StocksWolf752]

Could you kindly elaborate on the advisor's background and qualifications?

[@EleanorBaker474]

The advisor that guides me is Sonya lee Mitchell, most likely the internet is where to find her basic info, just search her name. She's established.

[@hasher22]

I live in Sydney and this is what the video doesn't tell you. 1. The older generations created policies and laws to protect their homes and investments. unlimited negative gearing 2. Overseas investors can buy Australian land, alot of overseas investors don't rent out their properties making it vacant. 3. There are approx 160,00k vacant homes in Sydney alone, the government NEEDS to look at these homes and see which ones CAN be rented out 4. Homes should be a necessity and not for capitalism greed. An individual should only have one investment, and companies and corporations shouldn't be allowed to buy so much land and monopolize Australia..... looking at you Woolworths and Coles 5. AirBNB should be heavily regulated. These politicians do NOT tackle the root causes but instead they keep creating bandaid fixes and money does not solve everything, throwing money to everyone increases inflation..... The reason why policies and laws don't tackle the root cause is because it protects the politicians pockets.

[@niknah]

More People working from home. They use up one more bedroom as a workspace, renting out bigger homes. More than doubling of migration numbers from the rates they were before Covid.

[@tsubadaikhan6332]

Not just Politicians. Nearly 30% of Homeowners in Australia own more than one property. They, and their immediate families, are not about to Vote to change the way their investment properties reduce their tax burden.

[@tahliamobile]

Another Australian here and totally agree with these points. Also, subsequent governments have sold off public housing for decades and not replaced stock. Australia now has less than 3-4% public housing stock but needs at least 20% to adequately house low income earners, elderly, people with disabilities, etc. The current Labor governments only main plan to address the housing crisis is to give billions of dollars to Vanguard and BlackRock for "Build to Rent" housing. This is absolutely NOT the solution and will only catapult the crisis into a catastrophe that will be very, very difficult to ever recovery from. Until Australia, and its politicians, stop the capitalist narrative and focus instead on the social well-being of citizens, housing will continue to be an option, not a necessity.

[@Cordycep1]

In Houston property taxes are so high near downtown, that when someone inherit a property they want to get rid of it fast.

[@mikebowers7719]

Sounds exactly like Canada’s issues. Toronto & Vancouver 🤬🤬🤬🤬🤬

[@MrBobbyBrown2006]

You could have switched out Australia with Canada in this video and not changed a single other thing. This is EXACTLY what's happening in Canada right now, and it's absolutely brutal. The younger generation will never be able to afford a home, and almost all of them can't even afford to move out on their own and will live with their parents for potentially at least a decade. Even people in their 30's are screwed, and especially anyone that is single. Canada as a country is sinking, fast.

[@ItzCairnsy]

Im glad we aren't the only people with this trouble! Hopefully it works out for all of us :)

[@jonathanbell7752]

Same for the uk

[@JudgeyJudgeyable]

I'm not sure that house they showed in the beginning would sell for 1.9mil even in Vancouver or Toronto.

[@AbhineetAsthana13]

Same here in Ireland

[@rmot2911]

@@ItzCairnsy it's there in a lot of western nations and couple of asian countries too

[@debbieanne7962]

Used to be the Australian dream to buy a house. Now it's to rent an affordable property 😢

[@davidnobular9220]

It's an engineered shortage - make no mistake.

[@Yalbou]

That was one of the advantages of living in australia. So much land that you didnt have to live in small appartments or units. Now its almost impossible to even buy a unit. Might as well stayed in europe and purchased a small appartment

[@DRpokeme]

And what are our politicians doing, SFA. No Royal Commission into housing affordability and rental market. Stop Real Estate agents from manipulation of the market. This idea that the sky's the limit, will come to end, and like it or not, what goes up will come down. Which political party has the balls to make a stand. IMO.

[@eurekaelephant2714]

Sickening hey. Very sad whats happened to our great country, and around the world too.

[@hocuspocus9713]

I just live in my parents' basement as a 30+ yo 😥

[@ethandaniel9071]

In 2018/2019, I left my management consulting job in Mumbai and relocated to Sydney, Australia, with my husband, who had already secured a position in the tech sector there. Housing costs have become exorbitant, groceries are becoming more expensive, and rent prices are on the rise, causing me to reconsider my decision four years later. What can I do differently at this point? Making ends meet has proven to be quite challenging.

[@leocarter2065]

The crisis is not limited to prospective homebuyers; even homeowners are feeling the repercussions. The accompanying increase in property taxes and maintenance expenses has driven up the overall cost of owning a home to unprecedented levels.

[@clintscott3300]

Many might attribute this situation to immigration into the country, but it goes beyond that. The Cullen Commission provides comprehensive information on why the housing market in Australia is underperforming, with issues such as money laundering and malpractices coming to the forefront.

[@ethandaniel9071]

Considering a move, perhaps even back to Mumbai, is a viable option, as long as you can maintain a decent standard of living in the current economic climate.

[@levisebastian9525]

In times as financially precarious as these, it is essential to seek advice from an experienced financial advisor. Professionals like Kayla Tabitha Rodigues have honed their expertise in navigating the complex world of real estate and financial intricacies, offering guidance and strategies to help individuals and families make well-informed decisions.

[@clintscott3300]

I've never witnessed such a large-scale operation so geographically concentrated. An ongoing public inquiry into money laundering in New South Wales, led by Justice Richard Edward O'Connor, is shedding light on the issue.

[@hazelem1266]

Looking for a rental is the most exhausting, stressful mentally challenging thing I have ever experienced. That includes a divorce and changing countries.

[@blank.9301]

Yep, definitely. I was homeless for 8 months last year and looking and going to inspections was like a full time job…. Mentally exhausting.

[@sevenhelmets]

It took us nearly 4 months to find our current rental. We were viewing anywhere from 4 to 10 places a week, and applying (and competing) against dozens of other parties. We were extremely fortunate our old landlords (who wanted the place back) were happy enough to wait until we found a new place. We only got the current place because we were pretty much first in the door on the day of viewing and applied on the spot.

[@blablup1214]

Yeah especially the first home. Can still remember vividly. Was a working studend here in Germany. And if you already saw 60 people in front f that appartment you knew you don't stand a chance 🤣

[@leea3531]

A divorce is wild lol 😂 . They want your money but not you

[@gladiammgtow4092]

Mainland Chinese money laundering using real estate all around the world has priced all the locals out.

[@Sagealeena]

Only 13% of houses sold in Australia in 2023 were considered affordable, the lowest since the people doing the study (PropTrack) started keeping records. Too much of our economy is reliant on the housing market, and so it’s literally killing other parts of the economy and so many people struggle to have somewhere to live

[@andreasvankur3735]

Many credits to Sir Trevor James Beckerman, he has been very helpful this year

[@stefanodsica2522]

Unfortunately I have lost more than I have gained since delving into trading stocks this year, are there any dedicated strategies for making profits at every particular point in time?

[@andreasvankur3735]

Search his full name

[@andreasvankur3735]

Trevor James Beckerman

[@andreasvankur3735]

You will find his webpage

[@ThatBlankGuy-26]

I'm American and seeing this happening in Australia. (New Zealand, Canada and the UK) this is terrifying knowing our housing crisis could get so much worse.

[@lakeline6317]

Believe me, it can but at least during the GFC, most areas in the United States experienced a price correction of around 30 % and the prices took several years to recover. In Australia ( I guess the same in Canada ), the correction was merely around 5 % and the prices bounced back in 2012.

[@outofthebox5441]

​@@lakeline6317they had tighter lending practices than the USA. THE USA housing market will not see a crash like 08 again.

[@dashuntas.m4045]

At least for the States, zoning laws and predatory ownership are the main issues for lack of supply; in Canada and Australia, the majority is the country is just barely habitable, leading to extremely packed urban bubbles.

[@persianguy2849]

You bet it will.

[@stevenhenry5267]

The commercial market might.

[@Emily-le2op]

People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.

[@KingDavid-jj7tk]

In my opinion, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.

[@KingDavid-jj7tk]

“Natalie Carol Nielson” oversees my portfolio, simply do your due diligence. She's an extremely intelligent person, very thoughtful, cautious, and shows a great deal of expertise with over two decades of experience in her line of work.

[@Doouzey]

Look up aus immigration numbers and how many new houses are being finished and that will give you your answer.

[@jezsez5074]

In the 70s economic downtown housing prices went up in Australia apparently. Other market forces (such as mass immigration) overrode the housing economy.

[@johng1738]

Government has an incentive to keep housing prices high. More tax revenues, and it’s the majority of people’s wealth. They will do everything to keep real estate propped up.

[@Steve-kk8yb]

Housing affordability here in Australia is a crime, there is not other definition for it, it needs to be investigated and people in charge of policy (over the last 20 years) need to be prosecuted/jailed.

[@gladiammgtow4092]

Mainland Chinese money laundering using real estate all around the world has priced all the locals out.

[@Ashleycorrie8494]

I’ve lost so much in the past 8 months from failed banks,Real estate crash,depressions,stocks,dividend,you name it What a terrible year it is...

[@Jimpard]

Thank you for sharing your experience. Your coach was simple to discover online. I did my research on him before I wrote to him. He appears knowledgeable based on his online resume.

[@Bradleyschaeffer376]

My previous coach got me into over 60 different investment which turned out bad,I lost over 25% last 3 years.Anyways that’s all in the past now as I was able to clear my debt and make up for my losses with the help of Samuel Peter Descovich

[@GaryWinstonBrown]

I found his extraordinary resume when I searched for his name on Google. I count it a gift that I went over this remark

[@MrZoomah]

I love how they conveniently left out the market manipulation policies that drove up house prices and benefited the wealthy.

[@leonie563]

They won't look smug soon when bushfires stop them getting a tan and insurance goes up 4x.....

[@jasondrummond9451]

What do you expect from Bloomberg?

[@MrZoomah]

@@leonie563 Hehe... You can tell who the tourists are because they are trying to get tans. Aussies do everything they can to avoid skin cancer being the skin cancer capital of the world. Kids aren't allowed to play outside at school unless they have a wide brimmed hat. When working in summer camps in America one of the parents joked that her kid was so white because of the amount of sunscreen I made them wear. Yep... My insurance went up 25% this year. I live in a bushfire area.

[@davidapswoude3259]

Government tax,levies&duties make up 65% of the lifetime value of all Australian housing . Not a housing crisis at all-it’s a tax crisis. China is worse-their taxes are all upfront before construction commences.

[@leonie563]

@@MrZoomah you may want to leave, that inflation is telling you something. Or you can stay until it's uninsurable. Move to a suburb in major City. Assume every Xmas will now burn. And either side of it for 3 months will be back burning.

[@Mattb81]

I had a workmate ask me how much my house would sell for and when I told him he basically congratulated me. House prices seem to excite so many Aussies. It’s strange. A high home value doesn’t make me rich because if I sell I still have to pay a high price for the next one. I think having so much money tied up in housing is bad for the economy.

[@HT-rq5pi]

Very true. I don't know why people are happy their homes are increasing in value. It is not a liquid asset. You can't sell it because you need to buy another one for just as high a price. The only people who win are the bankers raking in the interest on mortgages.

[@JV8391]

No but you can live with your parents and buy a lamborghini

[@Xalta_Sailor]

Wealth is wealth. We have the option to sell, take the proceeds and retire in Indo, Thailand or Malaysia and live like a king. But most of us choose to say here and whine. But we should remember it is a choice.

[@burak9857]

I don't think they make money by buying or selling but rather inflated property values which gives access to further equity and so on.

[@method341]

​@@Xalta_Sailoryou will be treated as a second class walking ATM in SE Asia. Heck, in Thailand, you can't even own land!

[@GierlangBhaktiPutra]

Australia and Canada having housing crises is one of the most ridiculous thing I have ever heard. They have fewer populations, more vacant homes, and more land than countries like Indonesia. Yet they manage to create artificial scarcity of housings.

[@claudiocarrera9552]

Chinese buyers

[@chriswatson1698]

Both Canada and Australia have had mass immigration imposed on them by traitor governments and their capitalist masters, who want more people to sell stuff to, and an increase in the value of their real estate investments.

[@Tony-theGreat]

Hopefully it will be managed in the future but for now I’ll stay at my family’s house

[@janejustin1788]

as a Kenyan, and i'm also shocked, 2 rich countries with massive lands having housing problems. my country is the same population as canada and australia but we are we poorer and a small land yet we don't have such housing issues

[@chriswatson1698]

@@janejustin1788 Does Kenya have 150,000 foreigners coming into Kenya every year, and wanting houses?

[@ziwer1]

There is absolutely no justification for housing crisis for countries like Canada and Australia. It's makes sense for Hong Kong, Tokyo. Australia and Canada are mini continents yet somehow people can't afford to buy a home or have to save for an entire lifetime for one? Why do they even have high rates of immigration if it's not to bring down labor costs and build more houses?

[@David-lr2vi]

We have high rates of immigration so the government can pretend the economy is growing when it’s actually in a per capita recession.

[@gyozakeynsianism]

It's not about the labor costs. That's a recent problem, but not enough building has been a long-term phenomeonon. Governments need to *allow* more building in more places.

[@Entertainment-]

They can afford a house if they choose to live in the middle of nowhere, but obviously no one wants that. Australia and to an extend Canada are just “islands” of cities, couple Hong Kong’s, Tokyos spread around a bigger “continent”. Most people in Australia don’t travel by car to another major city, they fly, as if it was a water-locked island.

[@shauncameron8390]

There is justification. Most people only want to live in the major metropolitan areas. And major metropolitan areas have only so much space to go around. In Canada, it's either Toronto, Vancouver, Montreal to a lesser extent or death.

[@David-lr2vi]

@@shauncameron8390 Well it’s not that people only want to live in metropolitan areas, it’s that they have to. All the jobs are in those few major cities and unless you’ve got a passive income or can work from home 100% of the time you need to live where the jobs are.

[@Fiyeroification]

I have applied for 90 houses in Melbourne in the last 3 months. I have a well paid corporate job and am homeless because we had to leave our old house due to a landlord who refused to fix any part of our home (the ceiling was leaking, parts of the deck collapsed under us, and they didn't want to touch the collapsing fence, despite owning both our house and the neighbouring property and us both having dogs listed on our lease) along with violent neighbours. It's a truly awful time.

[@prashanthb6521]

Do you own a van or a truck ? Eg: Silicon Valley.

[@Salman-sc8gr]

Yuck

[@davidnobular9220]

I understand that some social mob did a survey of Melbourne properties and found that the number of dark properties was enough to house all those on Victoria's social housing waiting lists. The thing that really p*sses me off is that no-one talks about the elephant in the room...except maybe Michael West.

[@Cupid_Stunt]

I have a 4 person tent for sale ... $20K and it's yours.

[@nickolas6060]

Yeah that sounds like bs

[@rajieapolinario2031]

I'm an estimator for residential projects in Australia, and the cost of construction has indeed increased by 30% in the past 2 years. A $600K house before now costs $800K to build.

[@TonyaDepaola]

That's right, getting in touch with an FA during the pandemic was how I was able to scale through the crazy stock downtrend and helped me stay in profit & save my finances.

[@LynGrengs]

STEPHANIE KOPP MEEKS does a perfect job. Look her up on the web

[@TonyaDepaola]

Thanks for the info. Found her web-site and it's really impressive

[@chodoboy]

I work in commercial construction as a commercial manager. Prices in commercial sector have done the same, it's mental. Price increases on fixed price contracts have cost us millions.

[@Mellyouttaphase]

Nobody cared when poor people couldn’t afford a home in Australia, but now that the middle class can’t even afford it, everybody is finally taking notice. It’s completely ridiculous at this point and younger generations feel helpless and left behind. Something’s got to give.

[@WillieFungo]

To be fair, poor people, by definition, aren't expected to be able to own a home.

[@re20bt]

Aussie here - you missed two KEY points regarding the housing crisis here in Australia: 1. Record migration (250,000 / yr) 2. Chinese offshore buyers spending $8m / day on Australian property THESE are the driving force behind the shortages.

[@luofubo]

China is not the biggest offshore buyer of Australian property market anymore, UK and US are. But China is still a driving force though.

[@gladiammgtow4092]

Mainland Chinese money laundering using real estate all around the world has priced all the locals out.

[@jaymcbakerk]

Everyone is so scared to blame ridiculously high immigration, when that’s exactly the reason there’s no housing supply. Bringing in 250000 people a year and building 80000 houses ain’t gonna cut it

[@BYAATC]

China is only the 3rd biggest foreign investor in Aus after the US and Singapore, check gov data before you spread misinfo

[@morfeyrun]

@@BYAATC how comes 5mln singapore is the 2nd largest investor in a nation of 30mln?

[@theodorevelentzas1065]

Australia is no longer the lucky country and government is to blame due to poor policy and in action. Australian property should not be used as a commodity to profit, but a human right to live in

[@davidapswoude3259]

Government tax,levies&duties make up 65% of the lifetime value of all Australian housing . Not a housing crisis at all-it’s a tax crisis. China is worse-their taxes are all upfront before construction commences.

[@Neojhun]

@@davidapswoude3259 Stop copy & pasting nonsense. 65% up over 25 years is nothing compared to the 2-300% in property valuation. You are blaming the wrong problem, that's just a symptom.

[@Clluthu]

lol it never was, you need to look up the origin of the term "lucky country". The original usage of the term really sums up aussies well.

[@adamknight5089]

'Lucky country' was sarcasm

[@slh950]

because Australian socialism was killed off by the yuppies and neocons

[@mrdeanvincent]

Frankly it's disgusting that some people want to own not just their own home but also collect other people's homes like they're Pokemon.

[@jackson1846]

and if you want to rent what would you do?

[@persianguy2849]

Absolutely right. Greedy cashed up investors raise the prices sky high. Eventually they will be the only ones who can afford to buy houses.

[@davidrossi1486]

Question one: what is a rental property?

[@Fiend404]

​​@@persianguy2849over leveraged "investors" playing the great ol australian ponzi scheme

[@emusaurus]

As if you wouldn't do it if you could.

[@brose2323]

Same thing is happening here in the States. A decade ago I bought my home in central Wisconsin for very little. It was a commitment because I knew that rural housing sold very slowly. Now my house has quadrupled in price and we get unsolicited buy offers. Meanwhile rent goes for 1400 a month. And this is on flyover country. The planet is setting up for a housing market crash 20 times worse than 2008.

[@jontalbot1]

Same thing happening globally. Big culprit is Quantitative Easing

[@zbdot73]

This wont happen in Australia because huge amounts of Chinese money comes in through back channels & there's no rational reason for those who profit from those cash flows to ever turn the spigot off. Combined with the huge uncertainty in the Chinese property right now, I expect the medium house price to level off somewhere around 5 million in next 5 to ten years.

[@jontalbot1]

@@zbdot73 At a wild guess l imagine you have zero knowledge of economics. QE was the policy of central banks around the world after the 2008 Financial Crash. Essentially banks printed money to keep the global economy going. That combined with very low interest rates has caused the housing bubble- everywhere

[@chodoboy]

​@@jontalbot1money printer goes brrrrrr

[@paulsz6194]

You know the Housing market is pretty bad in Australia, when Bloomberg starts talking about it!

[@Sonic300X]

And yet Australian politicians are cramming record numbers of migrants into an already undersupplied housing market. Building houses is one thing, but it takes years. The migration story in Australia and the rest of the western world is the real story here.

[@Spacemonkeymojo]

It seems these days that every second person I talk to isn't born in Australia. I go to the supermarket and all I see are Indians. It is f*cking weird.

[@gladiammgtow4092]

Mainland Chinese money laundering using real estate all around the world has priced all the locals out.

[@method341]

they have no choice because Aussies don't want to drive Ubers, clean toilets and wash the dishes.

[@jaymcbakerk]

@@method341we already have enough Indians to drive cabs, we don’t need any more

[@chriswatson1698]

Agreed. Immigrants come to compete with us, for everything necessary, from urban living space to the time and attention of our tradesmen and professionals.

[@tranquilitybase8100]

This didn't happen by accident. It took decades of careful, deliberate action to by governments and powerbrokers to achieve this.

[@elimead8260]

Love how the Politicians and Estate agents talk about it like it was an uncontrollable mistake, all while flashing a Rolex. This is no mistake. Soon everything will be by subscription, we will... "own nothing, and be happy".

[@brianh9358]

Kind of what happens when you allow property to be bought up as "investments", for use as AIRBNB accommodations, or by foreigners who don't actually live there.

[@donttalkcrap]

Absolutely, AirBnB has a HUGE impact! In cities where it is not regulated, the "vacancy" rate (in between occupants) could house tens of thousands of residents rather than these houses sitting idly waiting for the next overseas traveller. Thankfully, New York has woken up to this and is doing something about it.

[@gyozakeynsianism]

It would be just fine if there were enough supply. In fact there would be little point in investment properties.

[@shauncameron8390]

@@donttalkcrap AirBnB is the result of government meddling in the rental market that made long-term rentals non-viable.

[@General_Gene]

Yes, in Hungary i've heard that manny flats are bought by Chinese investors for investment and is not in use. They destroy the renting market and everything else too.

[@BritainRitten]

Actually Airbnb has a very little effect on housing, because relative to the entire housing stock, there's generally only a small fraction on Airbnb. The real solution is to just allow way more housing to be built - so the effect of particular use is overwhelmed by the sheer availability of housing - and thus housing prices lower.

[@manflynil9751]

That's why I'm leaving Australia. The societal consequences of this have barely begun. Australia has been irreversibly changed for the worse by this obsession for housing.

[@manflynil9751]

@@haydenwilliams1723 I'm a 52 years young chef and retired. Yes, you are right, it is a bit of an over reaction. But my gripe is with the skyrocketing costs of everything compared with the money I've made and saved. On a grand scale, it appears to point to a decline for Aussies in general. Yes, everywhere is suffering with inflation, but with SE Asia on our doorstep with fractional cost of living, that's where I'm going to live life.

[@Eric-kn4yn]

Where you going ??

[@michelledavies2197]

​@manflynil9751 and wait till climate change really hits Australia, you want be able to afford insurance.

[@thedownunderverse]

@@haydenwilliams1723not an overreaction at all

[@geertstroy]

​@@manflynil9751And where is your lifestyle gone then?????

[@carolgoulart9759]

Vienna is an EXCELLENT example of social affordable housing. Australia and most places is the world could benefit so much from adopting similar policies. Housing shouldn't be a form of investment, but a basic right for all.

[@Grahamisthesword]

I agree but we have greedy piggies in parliament. No shade towards pigs.

[@rimiserk8277]

Australia is increasing its population by 500 000 each year, its not organic growth, its importing Indians and Chinese who when they come to Australia need housing immediately, immigration is the problem...

[@Aussiemarco]

Housing in Sydney only being an investment started in the mid-1980’s. When I started art school in Paddington in 1983, I saw a small terrace house in Darlinghurst for $65,000 in a real estate agent’s window. According to the RBA’s inflation calculator, that equates to $247,000 today. By the time I finished art school in 1988, Darlington terraces were selling for $220,000 (the equivalent of $600,000 today). As this video shows, those houses in 1,000 worse condition now sells for $1.9 million. It’s definitely not inflation causing this. Population growth and greed is.

[@user-pq2ob1rd6r]

I have spent time in Vienna on & off Sorry to say, they are a bit more civilised there In Australia around cheaper places, you can see rubbish piling up, throwing out unwanted furniture out on the street, not looking after homes very well or not at all Agree that we need affordable housing, but we also need responsible tenants able to live amongst other humans

[@lemon8910]

Australian here. Our Prime Minister, members of his government as well as members of the Opposition, so basically all major parties, and even small parties, all own rental properties and multiple homes where this crisis makes them more money. Not to mention the 700k record immigrants we let into the country this year, we have a housing market nobody can afford to live in. It's so bad that parents are helping more than 95% of new homebuyers (usually young people) buy a home.

[@chriswatson1698]

We need to get rid of the major political parties and vote for a party that is willing to cut immigration back to the 70,000 pa that it was during the 2nd half of the last century, which was only 24 years ago.

[@lucindamakin1262]

Yes. The average first home buyer in Australia: rented 12 years whilst saving a deposit, often paying similar prices to the mortgage. is funding someone else's mortgage/retirement/other people's living expenses is 30-45 years old requires 2 full time jobs to pay the mortgage cannot afford children/dependents couldn't apply for a mortgage if they had a HECS debt/car loan/etc. if they didn't have 20% deposit they would have to get insurance (that protects the bank, not the mortgage holder) for up to $30k upfront (not considered part of the deposit) is buying overpriced, small units or entry level housing that is hours away from work. OR their parents helped in some way, even if it is allowing them to stay home beyond age 18. Your success in housing in Australia (almost) has nothing to do with you and how you manage money. It (almost) depends on how wisely your boomer parents managed theirs.

[@beyondher]

Yeah and IF your boomer parents are willing to help you, or hoard the money like in my case@@lucindamakin1262

[@silkysoftaus]

Here in Australia most of our Gov have property portfolios. They spend as much money supporting private rental market, with "rent assistance" as it does on social housing, 5.5 billion AUD. Rent assistances should be a last resort while waiting for social housing, not a cash cow for investors. Negative gearing property has hit 8.5b to the budget here in Australia. Also we have a capital gains discount which is up to 4.7b. Reducing both of these alone by 50% would provide 6.6b for social housing, doubling the government ability to spend instantly.

[@MrZoomah]

Don't forget the first home buyers grants. The ones economists have said for decades only increase house prices and make it less affordable, but government does constantly. Or the renovation grants, which really only the wealthy can access and drive building inflation.

[@davidapswoude3259]

Government tax,levies&duties make up 65% of the lifetime value of all Australian housing . Not a housing crisis at all-it’s a tax crisis. China is worse-their taxes are all upfront before construction commences.

[@adam872]

Given the majority of new dwellings are built with private money and always have been, do you really think that curtailing negative gearing or CGT discounts will do much to increase supply? It's not just about the money, it's about the general inability of state and federal governments to deliver infrastructure projects anywhere near on time or on budget. Let's see how the current $10B or so that the Feds are proposing to spend on social housing goes before we feed any more money into it. And besides, there may be some nominal budget savings in the first year or two from reducing tax offsets etc, but I'd very surprised if that lasted any longer. The market and its participants would adjust and the amount of revenue generated would revert back to the mean over time.

[@pootube2024]

​@@davidapswoude3259can you shut up,PARROT!

[@MrZoomah]

​@@adam872 It's not about feeding money into it, it's about taking money out of the incentive programs that drive up prices without impacting the building of new houses. Found a 2017 research paper that estimated that removing negative gearing and halving the capital gains discount to 25% would reduce house prices by 8-15%. But that's on 2017 levels. Houses are a lot higher now and so are interest rates. Yes, there is supply and demand. But with 1 million homes sitting vacant, it isn't a supply problem. Even if we say 70% of those are legitimately empty (sales, maintenance) that means a whole years worth of housing is empty for investment reasons. There is something incentivizing homes to be empty. I wonder how many homes would come onto the market when we stop manipulating the market? remember, we are meant to be a capitalist society. Given most of these incentives go to the top earners, it seems to be capitalism for us plebs but government handouts for the top earners.

[@dsdddsd4543we]

That’s around $1.2 Million US for that first “house” in the beginning. That’s insanity.

[@shaggydawg5419]

same story in San Francisco. US$ 1+ million will get you dilapidated, unlivable house that you must destroy and rebuild.

[@blank.9301]

Apparently you can still get reasonable priced homes on the outskirts of certain cities in the US like Chicago. Yes it might have higher crime but at least it’s a roof over your head.

[@malcolmrose3361]

The question is will the property be worth more than the $1.2M + refurbishment costs once it's finished? If the answer is yes then it isn't "insanity" at all. I'm guessing the value of that property lies in it's location and potential "character".

[@hubertcumberdale2651]

People tend to want to have a secure place to put their head down at night bruh. Gun shots popping up outside isn't most people's idea of that.@@blank.9301

[@chrispekel5709]

That house is also in a very expensive area. You can get something much much cheaper in smaller cities. It's like saying the entire US property market is San Francisco bay area. They always center these types of documentaries around the worst locations for the problem

[@jamesbanksco]

As a born and raised Aussie, I am absolutely disgusted by what my country has become.

[@AB-kf8ry]

Australia is a dead animal on the side of the road being picked by crows.

[@chingyminecraftgods9424]

You on Reddit?

[@shanemitchell5807]

The politicians have destroyed Australia.

[@freedomlife2024]

why you disgust? that's opportunity for you come in as real estate developer. 😂

[@user-pq2ob1rd6r]

Me too Australia is changing unfortunately not for better Not going to improve soon 😒

[@christinac3929]

Why rent your house to the same person for a year or more when you can rent the house at the same price for a week? I blame AirB&B for some of the problems. Another issue is the Australian government's decision to support people owning more homes through negative gearing, while ignoring the lower-paid people who can never afford to buy. Then, there are the foreign investors who buy up new apartments with the express intention of leaving them vacant until they appreciate sufficiently.

[@velisiakusno5526]

No mention of Negative Gearing on Tax ? My Aussie friends prouds themselves having 2nd homes… another apartment because of it. Also, most 1st home buyers had Mom and Dad help to put on the deposits first. If you’re not coming from well off family, you hardly have any chance to get into the market.

[@jaidanielparker]

Negative gearing has become a sacred cow, ditto the CGT discount. Any opposition or politician that has suggested putting curbs around negative gearing by limiting the amount that can be claimed back, the number of dwellings it can be claimed on or by limiting it to new builds has been crucified. The next generation of Australians will be lucky to have 1 home, let alone additional investment properties. I note there was also no mention of foreign purchases or Australian homes in this video. At present foreign buyers, particularly Chinese are VERY active in the Sydney market and helping to push prices up. I've given up on having an Australian government that cares about Australians owning homes. Both Liberal and ALP are just as bad.

[@ponzitizen]

No mention of the use of trusts to minimise taxes either or the money laundering laws not being enforced in property market...

[@jaidanielparker]

@@ponzitizen Howard opposed the AML laws, Kevin07 promised to legislate them and 16 years later we're still waiting. When we have a government that cares enough to stop dirty money being used to price our kids and grandkids out of owning their own home I will be very surprised.

[@dragonite87]

​@@jaidanielparkerLabor lost the 2019 election because Australian voters rejected their progressive tax and housing policies.

[@georgekem]

We all know what the tax laws around property are.....just roll with it.

[@fumble_brewski5410]

Whether in OZ, NZ, the UK, the USA or Canada, allowing unlimited foreign purchase of real estate always results in a distorted (and unaffordable) real estate market.

[@yannip2083]

Foreigners also ruined the housing market in most of Europe (France, Italy, Portugal, Germany etc.).

[@gladiammgtow4092]

Mainland Chinese money laundering using real estate all around the world has priced all the locals out.

[@fumble_brewski5410]

@@gladiammgtow4092 Sad, but true. However, if you recall that during the 1980’s, Japan also went on a buying spree, especially for U.S. real estate. Eventually the market imploded and they were forced to sell it all back for a fraction on the dollar. Like the old saying, bulls make money, bears make money, but the pigs get slaughtered. Cheers.

[@gladiammgtow4092]

@@fumble_brewski5410 This is different, the Chinese master race are trying to subjugate every other race on earth.

[@joeblue2492]

30 % of property in Melbourne are cash purchases ! That’s overseas buyers.. 30 % !!! People need to protest in the streets if they want change . 50 k people marching through Flinders street will get a rapid address to this insanity

[@Bee_Bill287]

There was a house in Canley heights Sydney last week, 4-bedroom red brick 1970-1980 build on 760 square meters sold for 4.6 million in auction an overseas investor bought it. That is crazy... This tells you everything that is wrong with Sydney and its housing crises.

[@MisterMooo]

It's on a busy road near a business district. The owners will simply leave it empty.

[@AnkurYo]

Im looking to move from LA to Australia . According to Zillow comps in area are 200k but property we are looking at is 350k should we go ahead to buy now?

[@AanyaDarika_]

Soon affordable housing will no longer be affordable so anything you want to do i will advise you do it now because the prices today will look like dips tomorrow . Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation.

[@westgibbs]

Loren Lena Walker is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with her correspondent to set up an appointment. The fixed income portion of your portfolio won’t simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income.

[@Cupid_Stunt]

@@AanyaDarika_I love how a few years of 5 or 6% inflation doubles the price of everything. I want investments that can do that.

[@user-xg6yc8ho3w]

You must be moving to a small rural area to get those prices.

[@kod9400]

The outer suburbs of Perth still have affordable properties available even around the 350k mark. Check out the Perth lifestyle. Similar weather system to LA. Hot and dry. Look into the the suburbs of Armadale/Kwinana/Midland/Gosnells/SevilleGrove,Camillo etc

[@StephanieHughesDesign]

As an Australian, this is the primary reason why I do not live in Australia fulltime anymore. Housing has always been expensive. Especially, if you were born and raised in Sydney like me. The thought of rebuying another home in Sydney again for me is a pipedream. Don't get me started on qualifying for a mortgage loan - its like pulling teeth.

[@nesseihtgnay9419]

where do you live now? US?

[@coasterblocks3420]

Thanks to John Howard, the market has been grossly skewed in favour of investors and something which shouldn’t be permitted, foreign nationals buying Australian properties.

[@stewart9788]

yep , born and raised in sydney , married and had kids , 10 years ago reliased our kids are not going to stand a chance here .Sold up and moved to tasmania now 1 of my children are in their own home and another lives in a flat on our property , never could of happened in sydney

[@davidapswoude3259]

Government tax,levies&duties make up 65% of the lifetime value of all Australian housing . Not a housing crisis at all-it’s a tax crisis. China is worse-their taxes are all upfront before construction commences.

[@MED-fe1qt]

I’m pretty sure dentists would argue that ”pulling teeth” isn’t too difficult… and may be easier than qualifying for a mortgage these days!

[@agnieszkamajer1088]

You should have mention our negative gearing tax - people who already own properties are incetivised to own buy even more while the age of generating property market for young people is going up and up. What it creates is an enormous wealth gap between older and younger but especially between Australians who have been here for 2-3+ generations and new migrants. And then people who don't need to work, because they own 5-6 houses become very aggressive and effective NIMBYs (blocking not only new housing but in my suburb even rubbish recycling and bike lanes!).

[@chrispekel5709]

As someone who owns multiple properties, I am the opposite of a NIMBY and want to see way more development and a return to realistic prices. We aren't all selfish, some of us went this route to build wealth but aren't interested in being greedy. I know it seems like an oxymoron given the current market but I try to keep my rents low and help tenants out as much as I can. I don't negative gear

[@davidapswoude3259]

Government tax,levies&duties make up 65% of the lifetime value of all Australian housing . Not a housing crisis at all-it’s a tax crisis. China is worse-their taxes are all upfront before construction commences.

[@adam872]

So what do you propose, getting rid of negative gearing? Better get rid of CGT while you're at it if that's the case.

[@sunoverbeach]

I think it's important that we reach out to our landlords and just ask: are you going to be ok? Will you be able to get through this? I really hope this crisis won't hurt your investments @@chrispekel5709

[@beyondher]

it's definitely greedy to own more than one home in this current economic climate. People appreciate low rents, but they prefer and deserve to own their own home. But some are more equal than others right @@chrispekel5709

[@Umtree]

I saw an interview with one of Australia’s Politicians in charge of “solving this crisis”. She owns 7 investment properties. …. Let that sink in.

[@justmemimi7338]

The middle class is being strangled in Australia, and we’re increasingly being pushed towards living in horrible shoebox apartments, with views of other apartments. It’s a disgrace. Mass immigration will make it all worse. The cost of living here, from real estate to energy is outrageous. This used to be “the lucky country”.

[@june-cz1cw]

The horrorfying thing is it stile is

[@chriswatson1698]

Australia was only lucky because we had a small population. Immigration is destroying our lovely country. Australia was always the driest inhabited continent on earth and our soils are old and leached. Yet our traitor governments are giving away our land to people from places that have more fresh water and better soils than we have.

[@alwayslearning7672]

Exactly the same in so many countries.

[@Aussiemarco]

“The Lucky Country” was originally a sarcastic comment. It’s correctly sarcastic now

[@chriswatson1698]

@@Aussiemarco But Australia really was lucky because it had a small population relative to its also small arable land and fresh water supplies.

[@cocojamonica]

Wow, I've heard New Zealanders talk about moving to Australia because the housing's supposedly better and cheaper. I lived and rented in New Zealand for 3 years, and saw some real shockers when looking for a place to live (I lucked out on a sweet little studio in Wellington), but if it's this bad in Australia, and New Zealanders still think of it as better, then I wonder what's going on in New Zealand

[@TheAfterglowArray]

It still makes a lot of sense for Kiwis to move to Australia because of the much higher incomes and lower living costs compared to NZ (for most places that aren't Sydney though I lived in Sydney and saved a lot more than NZ in the same job). I expect an increasing number of Kiwis to move to Australia and it's pretty much seen as a non issue for the NZ government because there a so many immigrants willing to accept the lower wages in NZ. Basically immigrants are cheaper to keep than Kiwis.

[@geertstroy]

I was convinced to trash my NZ residency already in 1995 , and happy I did , this place would reduce my life to a real estate neurosis and anxiety syndrom with dismal wages and no sound outlook but to move to Aus and endure the same delusional lifestyle more appropriately defined by " style of life" namely a very narrow gauge trajectory to evolve in more important aspects of life , and " beaches" . There are many many places with " beaches" lol.. ..

[@joeblue2492]

Go forth beyond

[@Romenamath]

We're moving from Nz to Aus next month. Even though Aus has experienced up to 30% increase in rent prices, its still half our NZ rent, and my wifes pay near doubles.

[@JimmyWelds]

I'm in the top 10% of income earners in NZ and I can't afford anything. Nevermind buying a house, I can't even afford to rent. If it wasn't for family and friends I'd be homeless working 50 hour weeks (many people are)

[@vivekshivdasani9521]

I remember houses in the outer west used to sell for $150,000 back in 1996. Sounds like a fantasy doesn’t it. I used to live in Spit Junction in Mosman in a single room in a lodging house and pay only $100 a week which included utilities. That was 12% of my weekly paycheque. Sydney was such an affordable city.

[@Cupid_Stunt]

"was"

[@joeblue2492]

Thanks for reminding people .. It’s out of control . How did it get like this ? Why are people not having 100,000 people protests ? Is is the boiling frog metaphor at play ?

[@audreyh6628]

@@joeblue2492 Because Australians are trained from birth to accept things as they are and not fight for more

[@Leroyaber]

Lol $100/week in mosman sounds like a joke to my teenage ears

[@josephwinder6878]

Well that was 27 years ago

[@godfreybarinor-dl3fq]

What matter most to you and say NO to things that don't aligned with your priorities. You'll make far more money and get things done if you invest on your future, it will become more important to you family.

[@philippine6168]

You're absolutely right, to be a successful in life required not only hard work but awareness and sometime opportunity at the moment, investment remains the best way to start.

[@samuelwatt4580]

​@@philippine6168I agree with you. Investment is the key to sustaining your financial longevity. And not just any investment but an investment with guaranteed return.

[@rahmatumustaph1609]

​@@samuelwatt4580yeah investment is the key to sustaining your financial longevity but venturing into any legit investment or business without a proper guidance of an expert can lead to great loss too.

[@josephvalentine-dk6mq]

Obviously talking about been successful, I know I am blessed if not I wouldn't have met someone who is as spectacular as Debra Barton

[@josephvalentine-dk6mq]

She helped me recovered all I've lost trading by myself

[@TheNewSchoolGamer]

Same thing happening here in Canada. The last town I lived in had home prices increase almost 70% in a year during the pandemic

[@StephBer1]

I never wanted to be a landlord but I saw the way the markets were going about 6 years ago so we bought 2 'investment" properties so our kids could at some stage buy into the market at a reasonable cost. They are still in their early 20s and saving for a deposit, but at current prices and interest rates, they would have to save about $200 000 to buy the property from us and still be able to afford the loan payments. My friends and family whose kids bought a home 10 years ago never had to go through these hoops to get an affordable home. I live in Brisbane, the 3rd biggest city in Australia. We sold our big home 5 years ago for $950 000. This year it was resold for $1.8 million. There is no justification for price rises like that. It's insane.

[@g.s.5868]

you plan to sell your house to your kids... maybe they better wait till you drop dead and pay nothing, well, except TAXES

[@NotKimiRaikkonen]

I know the feeling, the two-bed, 90 m² apartment I grew up in Park Slope, Brooklyn (NYC) just sold for $1.4 million. Crazy-land.

[@ryanclarke2161]

You are the problem

[@Vroomfondle1066]

Remeber the Kulaks? Stalin says: "Always keep a scapegoat handy!" @@ryanclarke2161

[@tandriklos177]

Wait, you gonna sell the house you own kids? Hope you're billing them for food and shelter during their early years as well.

[@allthewayfrom]

Housing is a basic human need. It shouldn’t be a commodity. When financial incentives compete with human needs, you get the dehumanizing results we’re seeing right now.

[@DavidinSLO]

Except, with all due respect, housing is NOT really a commodity. Unlike other "commodities" like oil, or gas, or wheat -- prices vary WILDLY based on location. A better solution would be to radically loosen zoning restrictions, which is what severely limits supply.

[@BritainRitten]

@@DavidinSLO You got the second part right. Housing is a commodity and can work like one but you've identified constraints on supply that force pricing to be be stubbornly high.

[@intuitivediane]

Building communities is also important. Funny how social housing people get to stay in their houses and it passes onto the next generation. Why did we increase our migration? .. if no one has anywhere to live.

[@blank.9301]

@@DavidinSLOAnd what…? Have more deforestation and congestion? It’s taxing the ~ 1million homes sitting empty from foreign ownership that’ll help…

[@IamYouYouAreMeWeAreNothing]

⁠​⁠@@DavidinSLObut Does price volatility really make something not a commodity? Oil can wildly differ in price based on location. WCS trades at a ~25% discount to Brent.

[@karlosxzy]

One of the most open, spacious and wealthy countries in the world has never been more difficult, expensive and stressful to live in. For anyone considering moving to Australia, unless you have family to live with here, don't do it. It's a trap.

[@jinx.love.you.]

I lived there at 2:46. I had the exact same view from my balcony. The apartment was a 2 bedroom on 2 levels, and it was 1600 AUD per week... I could rent it only for 6 weeks because it was going to another person. I remember it was very hard to even find an apartment/house to rent in a normal location... Transportation was very expensive too... The main issue was the Asians... The richest part of China was moving to study/work in Sydney and they could afford to buy us residents out.

[@prettyme3150]

Unbelievable 😮 Do you mean $1600 per week or per month?

[@baderlade]

​@@prettyme3150in Australia all rental real estate is per week

[@prettyme3150]

@@baderlade Wow! That's a lot. I find it hard to believe. $6400 for 2bedroom? 😳

[@baderlade]

@@prettyme3150 2-bedroom on 2 levels with a nice view in a quiet place for $6400 a month - easy. A basic modern 2-bedder within 10 km to the city is now around $4.5k a month.

[@jinx.love.you.]

@@prettyme3150 Weekly, it was bill included and short term. I changed and Moved to Syndey CBD the month after, where I paid 1,200 per week (bill not included), but it was on the same block of work.

[@user-iy6ht3cv4d]

Im looking to move from LA to Bakersfield. According to Redfin comps in area are 200k but property we are looking at is 350k should we go ahead to buy now?

[@AlexandreVincent-zn6zo]

I think home prices are gonna come down with the pause in hikes coupled with the new mortgage rates.

[@user-iy6ht3cv4d]

I will be happy getting assistance and glad to get the help of one, just how can one spot a reputable one?

[@johnpatrick1588]

Not only high priced homes but the common mortgage resets every few years unlike America where 30 year fixed rate interest mortgages are the norm.

[@victorburnett6329]

That is horrible.

[@davidapswoude3259]

Government tax,levies&duties make up 65% of the lifetime value of all Australian housing . Not a housing crisis at all-it’s a tax crisis. China is worse-their taxes are all upfront before construction commences.

[@littereverywhere]

But that would be racism.

[@Neojhun]

@@davidapswoude3259 Stop copy & pasting nonsense. 65% up over 25 years is nothing compared to the 2-300% in property valuation. You are blaming the wrong problem, that's just a symptom.

[@adam872]

Not sure what you're talking about with mortgage resets. Most people in Australia have variable rate loans that go up and down with interest rates. It's true that we don't have fixed rate for the life of the loan mortgages, though some people fix the rate for a portion of the term.

[@wangstick]

If you allow open immigration, and don't allow new housing to be built at the same rate, then the outcome is obvious - see what happens in UK, Canada, Australia. U.S. is different in that we constrict immigration and allow lots of new housing development.

[@EE-uj6tw]

I am Australian and I am “technically” homeless. My rent went from $560 to $900 a WEEK. I live in a storeroom. No cooking facilities,shower at a gym,wash my clothes at a laundrymat. My lease was close to ending and I was told to “get out the students are coming and they’ll pay that” I’m too old for the 20 year olds wanting a flat mate and too young for retirement place. Tomorrow I’ll inspect a small closet with a single bed for $300 but I know the line will be around the block. I hate life right now.

[@deborahcurtis1385]

Shocking. It's also degrading to make you feel less worthy because you can't find a decent place.

[@peteremmett8332]

I wonder if any of the useless Politicians will be reading your story......

[@skint16]

I have 18 days before I'm homeless. If I suffer so will others

[@puffinjuice]

Same problem in Auckland. We have garbage housing but the demand is pushing prices up to insane levels! Can't believe anyone would spend that much money on trash 😢

[@MrSweetAsbru]

Chinese buyers

[@gladiammgtow4092]

Mainland Chinese money laundering using real estate all around the world has priced all the locals out.

[@claudiocarrera9552]

Chinese buyers

[@Zilron38]

If you look at our Australian government long term report it is going to get way worse. The supply growth of housing which developers have said is unreasonable is still at a ratio of 1:2 to 1:4 of supply demand. Which means for every house built, we have an extra 1-3 people have no where to live. We already have 3 to 4 high incomes buying a single property and cramming into 1 house. If you are single with a medium income and small deposit, you can not afford to buy the cheapest apartment. More and more people are been driven into, family houses, friends houses or the streets each month. Our government has no plans to slow down population growth and even the most optimistic plans for housing is not enough to keep up with that growth. My colleagues at work are terrified, one is soon to lose his apartment and can't find anywhere to live, another has been looking for months and can't find anything because there are 50-100 people applying for each rental property. It is really becoming a nightmare.

[@mattmartini836]

bringing in 700K immigrants in a year isnt helping either

[@iggytse]

Air BnB is also causing the limited supply issue. When you have people with full time jobs going homeless you know something is wrong.

[@terywetherlow7970]

Air BNB is about to go flat.

[@shauncameron8390]

Government over-regulation created Air BnB.

[@Aussiemarco]

Correct, and this is a problem all around the world, especially places with high tourism like Sydney. Most quaint cottages that come up for same where I live in a small town in southwest England are snapped up by Londoners and converted into AirBnB holiday houses. In Venice, local Venetians that rent their apartments are being evicted to turn them into AirBnBs, and most apartments that come on the market become AirBnBs. Many Venetians born in Venice are being forced out of their beautiful city. Venice is a warning to other high volume tourism cities, eg Sydney, Gold Coast, Cairns etc.

[@freedomlife2024]

​@Aussiemarco you speak English very well 😂

[@chimcray6718]

It's shameful to live in a such a country with massive land but also high housing prices. Every penny goes to the mortgage and no more money to eat quality, live quality.

[@emusaurus]

Plenty of cheap houses in central Australia. Go and live there!

[@miketran4289]

The last Government party here in Aust (The Libs) opened their arms to Chinese investment which is what caused all of this. The thing about Chinese buying the homes is that they just leave them vacant.

[@dinoa9608]

Same problem in Vancouver Canada. Government doesn't want the public to know or keeps stats and info obscure.

[@jasondrummond9451]

At least BC has the anti-speculation tax on vacant homes. And I think Vancouver also has a vacant home tax as well. Didn't the Feds recently pass a law that non-citizens can't buy property?@@dinoa9608

[@chrispekel5709]

It didn't cause 'all' of this. It's part of a series of problems that all add up. People from England the USA outnumber Chinese buyers

[@davidapswoude3259]

Government tax,levies&duties make up 65% of the lifetime value of all Australian housing . Not a housing crisis at all-it’s a tax crisis. China is worse-their taxes are all upfront before construction commences.

[@Neojhun]

FYI "The LIBs" is The Nationals + Liberal Party Coalition, the "centre" Right more conservative major political party coalition. The last guys was a religious freak speaking in tongues.

[@Dcage13]

Australia media ban all comments. Its nice to see what others think of issues like this. Thank you bloomberg for having freedom of speech.

[@Adman1175]

I notice you didn't address the elephant in the room - mass immigration. The government is literally importing demand in the form of hundreds of thousands of immigrants per year whilst supply has contracted for the reasons you talked about. Massively increased demand coupled with a dwindling supply of housing stock = huge price inflation. Economics 101.

[@2msvalkyrie529]

Precisely !! The Great Immigration Ponzi Scheme . " We need immigrants to do the jobs that " locals " won't do ..?!?! And then we need MORE to replace them ?? Insane.!

[@nate_wil]

The fact that not one person in this video mentioned Negative gearing, foreign investment and the loosest money laundering laws is a travesty

[@terywetherlow7970]

I have never heard of "negative gearing."

[@benhutchinson9054]

As an Aussie, the elephant in the room from my perspective is the absurd immigration numbers that our blind politicians are accepting annually while having no strategy to house them ...

[@aussiewattle4299]

Ben, They are not blind. They know what they are doing. They are squeezing you out of the land that your forefathers pioneered. They are both globalists and friendlier to the banks than the punters who still vote for them.

[@prosodiclearning]

same in nz they bring them in in their millions .. ..and put 40 in a 3 bedroom house

[@mosesgoldbergshekelstien1520]

Immigration from July 2022 to September 2023 has been 730,000

[@Spacemonkeymojo]

I'm starting to really resent anyone I come across that wasn't born in Australia. It seems like every second person I talk to wasn't born here. And I don't mean just Indians and Chinese, I mean English, Canadian, Dutch, Swiss etc. Like stay in your own f*cking country ffs.

[@Dexters-lb2ll]

who is going to fund the old retiring boomers and the expensive medicare system and their pensions? or keep working till 85. no choice except more growing young immigrants to feed the old

[@ItzCairnsy]

Im a first home buyer & banker for one of the main banks in Aus. Most people I talk to have typically between 1-5 investment loans all equity stacked on top of each other, DO NOT, AND HAVE NO INTENTION of living in Australia. It is purely overseas Asian buyers abusing Australias purchasing power and prices to purchase investment properties and drive up rent and housing prices without contributing anything to the market.

[@GarretKrampe]

This is a disgusting indictment on the Political scene in Australia . The government increases immigration of rich Chinese and Indians that have MORE cash to spend than any "base" Australian can save in a life time. It is PURE CORRUPTION ! These homes are not being built at any kind of rate and that is ON PURPOSE to increase the PRICE . So basically Australians can NOT afford a house , they can only RENT from Foreigners. DISGUSTING Political reach around from Developers /Banks / Local Councils that are inundated by foreign nationals seeking only extortion, and supported by the politicians that get hand outs from these "extortionists"

[@darkphoenix8350]

Remember it is not those Asian investors fault. In fact, successive governments in Australia have allowed them to do so. Probably, those politicians have no investment properties AT ALL. *giggling giggling*

[@nickthequick]

Sounds like something Canada has experienced too. Easy solution is to increase taxes on vacant properties until it becomes unattractive to keep them at safe distance from the Chinese government a.o

[@ItzCairnsy]

Would absolutely help the problem. Theres also issues with property purchases between state economies as COVID hit some states worse than others and theres gaps in economy structures, especially in housing markets. I feel bad for Chinese, Indian and Hong Kong residents that genuinely move to Australia since they can't afford homes in their respective countries but unfortunately it is not the case and is mostly a method used for retaining their money and receiving external income streams from working-class australians :( @@nickthequick

[@TheBooban]

It’s not only that. Imported workers as well, displacing locals in well paid jobs too. Just look at IT. Who are those developers? You think the problem is that locals can’t code? I don’t think so.

[@thomasdevine867]

I wondered why Australia had such a low birth rate. Having seen the price of anything that can be labeled a "home," I am no longer confused. With no place to raise families, no families are raised. Evicted for asking for repairs to a shower? The landlord is an idiot! A broken shower can lead to water damage to the frame of the building. The landlord needed to fix the shower to protect their investment.

[@rimiserk8277]

Low birthrates are result of women having rights, hypergamy paired with birth control pill and social media will destroy West. Its all womens fault.

[@mattyd3079]

Just because someone is lucky enough to have an investment property doesn’t make them intelligent. They are painting over mould rather than removing it just to get an unsuspecting tenant to move in.

[@beaulieuc8910]

many of us don't want kids anyway

[@michaelharrington9966]

As other people have commented, we are in this situation due to the policies adopted/enforced by our Political parties. Australia is no longer a place where you can expect to purchase a house, raise a family and retire with some money - instead they are slowly raising the retirement age, and you need two incomes just to exist. The Aussie Politicians are too heavily invested in the housing market to be to ones who set the policies, resulting in an ever increasing wealth gap.

[@chriswatson1698]

All three major political parties want a bigger Australia. That is what is forcing up prices.

[@captainhickey2608]

Actually, I think the young man at the end put it in its true context, owning your own home has become a privilege and an unaffordable one. This story missed so very much covered in the comments following. No one is prepared to take the risk property will lose its value or have it drop which may be a consequence of pursuing real solutions. Greed, generational choices, financial drivers and so much more are at play. So much talking goes on publicly by government but all the back room discussions with corporates are ultimately driving its failure to materialise.

[@giovannimartin9576]

Rich portion of the population should not be speculating on housing, as it is a basic human need. And any government should prioritize low-cost housing for the benefit of the majority of the population.

[@KCAlbak]

Even if you go into great debt and successfully "buy" a house, they lie to you at the closing, when they congratulate you on becoming a proud "homeowner"! The bank or mortgage company IS the owner, until that mortgage is paid off. If you don't believe it, try not paying your mortgage for five months; then the company or bank that is the TRUE owner just takes it back. Work two jobs and/or weekends to pay it off ASAP, even if you work 70 hours a week for ten years. And if you can't afford the payments on a 15 year mortgage instead of a 30 year, that's proof that you can't afford the house!

[@ozmyldz7509]

I am a highly skilled engineer and researching affordable overseas countries to buy a home and leave Australia. Many of my friends are in the same boat. Don't buy here and get ripped off.

[@coasterblocks3420]

We should pass a law like in Japan where only citizens, and to be generous, actual residents who live full time in Australia can buy property in Australia. Force all the foreign nationals to sell their Australian property investments. That’ll put tens of thousands of homes back into the housing market and correct the market pricing at the same time.

[@mujkocka]

Pretty sure in Japan allow non resident or citizen to buy. It’s impossible to get a local mortgage though

[@kadirs377]

Anyone can buy a property in Japan.

[@DB-DB-DB-DB]

That law pretty much already exists. Foreigners can’t buy existing housing stock. They can buy new property because that increases rental supply.

[@windsong3wong828]

Do you know that even if foreign owners sell their properties, it does not change the total number of housing stocks ? Renters need properties owned by absentee landlords. If everyone stays in their own house, who will own properties to be rented out ? Australia needs MORE foreign investors to buy new apartments to be rented out . Crazy….? Think about it.

[@linalie3224]

Australian gov wont do that, they love stamp duties! Why care?

[@lucystrauss2989]

I’d rather live elsewhere than Australia.. it’s a cultural desert. The competition for housing is brutal

[@hubertcumberdale2651]

It's a really overrated country as far as quality of life is concerned. I mean there's beaches everywhere FFS....

[@latebowl1]

The problem has been 100% engineered by government. For 2 years, they basically banned builders from building houses during the pandemic, then they over stimulated the economy and now they are welcoming in record high numbers of immigrants. They say migrants are going to address the skills shortage, but foreign students and computer programmers don't build houses, they take houses. Overall its very simple; if a foreigner spends more money than they earn in their new country (which they all do), then they have added to inflation, not reduce it.

[@chillijoe8264]

its very strange that a country with a tiny population and vast amounts of land available that prices are so high, something doesn't add up.

[@fraankenstine]

It’s mostly desert

[@jonathanbrittain4681]

Yeah, mostly inhospitable to life

[@Cassandra-dl3bf]

It's the exact opposite in Singapore. High density with limited space.

[@Elrocketero]

Over-inflated prices have occurred because property has become a commodity and view by many as a source of income. Government reforms are desperately needed to financially penalize multiple property ownership. It's likely many of the potential buyers in this video already own one or more properties.

[@shauncameron8390]

Most of Australia's land is a desert and unfit for inhabitation.

[@lesterpossum4088]

A home was supposed to be every person’s lump of capital, anchoring the economy and society in general. But accelerated after 2008, capital and real estate is in fewer hands. This only created the dominant incentive toward artificial scarcity. It’s not about as much housing for as many people possible, it’s about as much money going into as few pockets as possible.

[@Bobrogers99]

The situation is similar in the US. Part of the problem is that rigid, outdated zoning and building codes limit the types of housing and where they can be built. Part of the problem is that luxury homes are more profitable, so relatively few affordable units are built. Part of the problem is that investors snap up new houses and apartment buildings, and many of the units remain vacant while awaiting still higher prices.

[@markbrophy5454]

It's easy to find an affordable rental or condo or house to buy in Tulsa, Oklahoma and Oklahoma City because the government allows people to construct housing. Other cities block housing construction, creating an artificial shortage and high prices. Japan is affordable, too, because they have a national zoning law that doesn't allow cities to block housing construction.

[@donaldkasper8346]

@@markbrophy5454 Japan population is declining, so housing cannot be pressured.

[@esonon5210]

Not really because there's still lots of affordable housing in America

[@Bobrogers99]

@@esonon5210 Apparently so in Tulsa, but not in New York or New England.

[@esonon5210]

​@@Bobrogers99 yeah some of the most expensive areas in the country, what a shocker.

[@godfluffycuffs3957]

You forgot to mention the million empty homes that are investment propperties and air bnbs

[@jzou1030]

You can probably switch Australia to Canada, UK, US and NZ. But I have never seen any of those countries’ government are as supportive as Australian government to the housing speculation and money laundering. Whether or not those governments are controlling their house price effectively, they are at least trying by introducing vacant tax, foreign buyer restrictions and many other measures. I couldn’t believe Australian government almost have no policy to protect their renters and allows the landlord increase the rent as they wish. I am Chinese, I saw many Chinese real estate agent brag about how Chinese buyers fly private jet to Sydney, Melbourne to buy houses in cash. The real estate market is slowing down all over the world with the rate hike except Australia. How is that normal? I don’t doubt this country is attractive to immigrants for their milder climate and beautiful ocean line, but with current crisis, those who actually want to start a family and call this place a home are kept out of the door. This country is falling fast and becoming a wonderland of the speculators and their black money.

[@peteremmett8332]

Yes you're right....Unfortunately many or most of the speculators come from china..

[@el6957]

The rental market in Australia is nuts. Between my partner and myself, we are earning over $240K and it still took us 10 months to find a property in one of Australia's capital cities. And even then, we are paying a lot of money for a property that needs a lot of repairs and probably isn't as well cared for as it should have been.

[@chrispekel5709]

I work with a guy who (with his girlfriend) found a townhouse 7km from the CBD in Sydney in one month. They showed up to the inspection as the first people and the landlord gave it to them. Did they get stupidly lucky? It was the first place they looked at. This was 2 weeks ago

[@britjj5126]

​@chrispekel5709 what part of Sydney?

[@kadachiman7234]

Governments should have treated policies for housing as a life necessity and not as a part of any wealth growth portfolio.

[@feral4mr2]

Real estate agents here are cleaning up! They're making massive commissions. They push house owners to raise the costs of rent, tell home owners they can get ridiculous prices for their homes selling. $$$ in the eyes. Wife and I'll be living in a old school bus shortly as we cannot afford to buy or rent anymore.

[@vk88864]

I hear you. I have standards and they are not that high but this house that I’m currently in is the worst house I have ever lived in. We had to use our savings to move and I said to hubby I would rather live in a tent than pay high end rent for a low end property. You are best off living in a bus or caravan until you find something decent. We’re going to downsize so we can live in a tent or caravan if need be and get out of the lease asap.

[@feral4mr2]

@@vk88864 we'll never own real estate in Australia unless win lotto. Being on DSP and only can manage part time work, wife a community carer but both do not bring in enough for a deposit neverlone pay a mortgage. I can't guarantee my ability to maintain working anyway because of health. I'd say once we're in this bus (sooner the better) that's going to be our home for some time. Best of luck in your search too.

[@beyondher]

Maybe it's a blessing in disguise, mobile living means you can have adventure and also drive away from all the natural disasters!

[@feral4mr2]

@@beyondher moreso the grubberment cannot take it off us.

[@youbigtubership]

There are a bunch of reasons why this is happening. One is the masking of currency depreciation. But completely separate from the function of houses ('a roof over head'), banks have an interest in rising house prices to underpin their business, property investors obviously do, real estate agents get higher commissions, and governments get great tax windfalls. So alot of people and institutions win. Also, the influx of money from overseas pleases sellers, real estate agents, and governments, but the flood of money devalues currency at the top end. This has not been reflected in pegged-to-inflation wages. So the purchasing power of my dollar has depreciated extremely quickly. If 20 years ago my $1 could buy a house, in many cases now I need $2. So my dollar buys half of what it used to in real estate. The number of dollars in my wage has barely budged, though.

[@method341]

Gold priced in AUD has stayed resilient as has real estate. Hard assets will protect against a depreciating currency!

[@knights162]

Houses in Australia are an investment instead of a basic human need, that's the problem we have. Policy and government pump up the market, it's not surprise their solution for over a decade is give property developers more money and it hasn't fixed anything.

[@9slideglide]

Eleanor succinctly explained a root cause, "very tight conditions with respect to the supply of stock on market". There are a number of large developers (including publicly listed companies) that own vast areas of land in urban areas of Australian capital cities that are under no obligation to develop the land into housing with any kind of time constraint. In the interest of maximising profitability, such developers supply housing in a planned way to ensure that the excess demand for new housing persists and prices continue their march upwards. Nothing really changes.

[@person.X.]

It is high time the state and federal governments pulled their fingers out and started to make things happen in terms of land and house supply. The inaction has gone from being merely dubious to downright corrupt.

[@donaldkasper8346]

You have people screaming climate change and decades drought in Australia, so new units requiring water are halted to save for the apocalypse. Then of course, it rained, and rained, and flooded, and rained some more. But the policies do not change.

[@voodo0983]

Always with mainstream media, "supply" issues are the only thing you are allow to talk about. They never talk about "demand" and where it is coming from. UK, Canada, all Anglo Saxon countries have the same underlying cause for the demand side, the bonkers scale immigration flooding the West

[@tovsteh]

Australia's standard immigration rate has been around 120k - 180k per year. So far in 2023, Australia has taken in 650,000, and the politicians have absolutely no plans in place on how they are supposed to be housed. Australian politicians are completely disconnected from the needs of the people they are supposed to represent.

[@timblizzard4226]

That's due to a backlog of immigrants from covid

[@TheTokkin]

Immigrants build housing though

[@Ragnarsnakeye]

​@@TheTokkinRubbish no they dont

[@sirsillybilly]

@@TheTokkinI thought they were busy doing Uber eats

[@mckoz523]

Some hard decisions need to be made otherwise nothing will change. To all governments, stop sitting on the fence and make some significant changes. Prioritise your vulnerable citizens for once to get a roof over their head.

[@cfclazio621]

This is the same in england because its so difficult to get planning permission because of local councils snobby attitude of 'not in my back yard ' so fewer houses means higher prices , selfish people run councils and country !!!!!!!!!!!

[@LuxLucis_]

Politics are the rich landlords who own all these houses.

[@2msvalkyrie529]

Drivel ! With immigration at current levels in both UK and OZ no government could build enough houses to meet demand. Especially when the demand is fuelled by unskilled , low wage migrants !!

[@tommygunTW1]

Also to add 600,000 overseas migrants arrived in Australia in the last year. The current government is a shambles.

[@Jorge-lm4bg]

Ban Airbnb in mayor cities, stop the sale of properties as investment. Also, ban the sale of properties to non-permanent resident or non citizens.

[@jacobwatts2085]

Mayor's don't deserve holidays I agree

[@daniilkeen6178]

F government that gets all these immigrants when most of Australians against that.

[@cynicallyyours6537]

Too many AIRBNBS and rich investors who purchase cheap properties and leave the properties vacant have created a rental crisis.

[@oggyoggy1299]

True. My holiday home is empty 80% of the time.

[@cynicallyyours6537]

@@oggyoggy1299 exactly

[@mariod.4809]

Mind boggling how the issue of inequality is refused to be discussed here

[@MRkriegs]

Care to elaborate your point?

[@khanhhung8959]

Equality= commies

[@brettcrawford8878]

If you own land or houses it can mean values of properties increase. Immigration was put up to help hold up or increase property values. Lot of construction firms have been going out of business meaning fewer houses are likely to be built. A lot of builders could not afford the money to buy land or build anything around Sydney anyway. Possibly meaning fewer houses will be built in or around Sydney or anywhere near to it.

[@livelifelovelife7787]

Basically in Australia, you have to work whole life to buy a house with just basics This is very unfortunate time full of greed

[@Kurio71]

Strap in folks, with immigration levels high & chronic low housing supply we're in this for a few years

[@helixator3975]

Ideas to make Australia. housing affordable: 1. End negative gearing 2. Double stamp duty for a second property , triple it for a third etc 3. Reduce immigration rates, 400,000 a year is madness! 4. Go beyond the big 5 state capitals and develop regional cities 5. Bring back housing commission homes 6 Vote out the current load of politicians , Lib/Lab are both useless

[@surenderyadav7738]

Only a 2008 Financial Crisis can help new home buyers now ☠️

[@davidapswoude3259]

Government tax,levies&duties make up 65% of the lifetime value of all Australian housing . Not a housing crisis at all-it’s a tax crisis. China is worse-their taxes are all upfront before construction commences.

[@jaidanielparker]

I doubt it would help. There was a dip in prices leading up to the GFC but a new financial crisis will result in interest rates cutting back toward zero, RBA stepping in with liquidity support and government pumping the demand side with home owner grants. We've seen this film too many times since the turn of the millennium. Every crisis simply results in the property market getting pumped higher. I know everything has it's limits but investors are still equity stacking, the rental crisis is a gift to landlords and we still don't know how much dodgy foreign money is being used to bid prices higher.

[@Prodrive1]

True.

[@peepeetrain8755]

why was i wasting time in Kindy in 2008 instead of buying houses >:(

[@braddavenport6472]

It's a supply crisis, and I wish this reporting focused more on that aspect. Developed countries have all done this to themselves with overly stringent zoning/regulations. In the US our zoning laws are often explicitly designed with the purpose of reducing development.

[@SolarPowerMyRV]

Housing is so easy to solve but there are too many people invested in prices going up constantly. Mobile homes are in expensive but no one wants to let you put them near the places that need it most