Grattan: Supply biggest house price barrier. Pump immigration!

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For year’s the Grattan Institute has supported Australia’s ‘Big Australia’ mass immigration policy.

At the same time, Grattan has blamed a ‘lack of supply’ for driving Australia’s housing affordability woes. The latest example comes from today’s SMH where Grattan Institute’s economic policy program director Brendan Coates notes the following:

Grattan Institute economic policy program director Brendan Coates also backed the supply side recommendations, after submitting evidence to the inquiry that building an extra 50,000 homes a year for a decade could result in house prices and rents being up to 20 per cent lower than they would have been otherwise.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.