The Claw is, undoubtedly a right legend. And a legend who is undoubtedly right.
he has a superb understanding of how housing supply affects housing prices and conditions, which was explored in his seminal work “The Parable of the Frozen Oranges”.
he has recently posted a more concise comment which, although superb, generated no response or comment in the deadpool of MB. It deserves better. It deserves reproduction:
It is most important (for the wellbeing of ordinary people) that the number of exta houses keeps up or exceeds the number of extra families.
When extra housing falls short of extra people, a housing shortage results. (We have a terrible housing shortage in Sydney and most parts of Australia).
When housing is in shortage, it becomes mathematically impossible for a number of families to attain independent housing – they must share or go without.
Being unable to attain housing is expressed and indicated in various ways:
* queues for social housing grow. Families must wait. A long wait indicates shortage.
* rents for housing become unaffordable. The high rent (compared to wages) indicates shortage.
* price to buy a house is out of reach. The unaffordable buy price indicates shortage.
To solve the shortage, politicians must ensure that supply of extra housing is matched to extra people (eg babies, children growing up, and of course immigration).
If politicians are to be fast and loose on immigration, then (for the wellbeing of ordinary people) they must also be fast and loose on housing supply.
However if politicians are to be stingy and mean on housing supply, then (for the wellbeing of ordinary people) they must also be stingy and mean on immigration.
The politicians get to choose these things. And voters get to choose the politicians. Think about this next time you vote.https://www.macrobusiness.com.au/2021/06/first-home-buyers-locked-out-by-decade-of-sydney-undersupply/#comment-4137297