The fake left is furiously debating doing nothing on its own engineered housing crisis.
The Prime Minister is set to reintroduce the Housing Australia Future Fund bill back into parliament this week, a proposal being blocked by the Coalition and the Greens, who are demanding a coordinated nationwide rent freeze.
They’ll just say we want more therefore we’ll have nothing,” he told ABC Sydney radio on Monday morning.
The HAFF is a joke. 30k homes over five years when we need a million. The Greens are right to resist it.
But they are completely wrong in their solutions. Even a doubled HAFF is almost as useless if you increase the population by a million people over the same time frame.
The Greens will still rely on the private sector to deliver 94% of the required dwellings to prevent their housing shortage from worsening.
Yet they also want to freeze rents over the period, dramatically deterring investment.
Australia’s property construction cycles operate on boom and bust dynamics. Capping rents will disrupt this dynamic by delivering a major price signal to the housing market not to build further rental stock.
Because the price interference comes from the government, the supply stall will intensify owing to policy risk.
A discussion from 2013 with RBA governor Glenn Stevens is useful. When Australia faced a similar deteriorating economy, with quantitative peopling in full roar and housing shortage in prospect, the RBA saw that it needed to deliver s price boom to get investment moving:
The fake left only cares that the borders are open and millions of foreign labourers can pour in to be exploited by capital.
Any discussion about the fallout for housing is as fake as it is loud, cruel and mendacious.
