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Prominent economist explains why ‘less’ could be more when it comes to solving housing affordability crisis

Jacqui Felgate
Article image for Prominent economist explains why ‘less’ could be more when it comes to solving housing affordability crisis

A prominent economist says the federal government’s best chance of easing Australia’s housing affordability crisis is by “backing away” from policies that will only increase demand.

The matter is a prominent election issue, with calls for whoever gets elected next month to implement programs to help those struggling to break into the market.

But Saul Eslake said those initiatives, such as grants, often only made it more competitive.

“There is not a lot the federal government can really do to boost housing supply,” he explained.

“What it should be doing, Tom, is backing away from policies that needlessly inflate the demand for housing.”

Press PLAY below to hear Saul Eslake’s analysis

Picture: Getty iStock

Jacqui Felgate
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