Treasurer Joe Hockey confirmed yesterday in New York in an interview with CNBC that our large migration program is one of the key drivers of housing unaffordability for young people.
He told CNBC that “Australia is a long way from a housing bubble….The fact is we have a very generous immigration program and we have very slow supply coming in the market”.
Mr Hockey is correct that the high migration program is a driver of rising house prices in Australia. Where I differ from Mr Hockey is that I don’t believe rising house prices is a good thing. The fact is that housing is a necessity, like food, water, electricity and petrol. No-one cheers when the price of food, water, electricity and petrol goes up – why should we cheer when the price of a house goes up?
That cheering drowns out the quiet sad shrug of a generation being locked out of the opportunities which my generation and the one before me had the good fortune to have.