Tuesday 30 August 2016

Falling Property Prices is Bad News




There is no questioning that housing affordability is a serious issues in Australia, when comparing home prices to disposable income we rank at + 9%. However, there are a number of solutions that can assist in addressing this issue.

The protectionists argue that restricting migration would lead to less demand for housing and prices trending downwards. This sounds fine until you take into account the economic benefit that migration provides. Take Japan for an example, an economy that has virtually blocked migration, where the population has declined by more than one million people resulting in more than 350,000 houses that are no longer needed.



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