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It’s not migration causing unaffordable houses, it’s tax and planning

13 0
tuesday

If there were ever two topics so closely linked in the public consciousness that conversation about one was impossible without mention of the other, it would be housing and migration.

Illustration by Simon LetchCredit:

As a second-generation migrant, I might be expected to come to the defence of migration. After all, I’ve watched my parents build a life here, and I’ve loved growing up and living here.

But nearly all of us are here as a result of migration at some point in our ancestry. And most of us have benefited greatly from the generations of economic growth and richness that cultural diversity and the hard work of migrants have contributed to this country.

There are few sensible Australians who dispute that, although news this week that the Trump administration (which sees mass migration as “an existential threat to Western civilisation”) has ordered its embassy in Canberra to collect data on “migrant crime” – and recent anti-immigration rallies (after which some protesters were spotted dining at a yum cha restaurant) – show there are some who can’t see it.

When it comes to housing affordability, one of the most commonly held views is that migrants are pushing our property prices up. So let’s talk about it.

As with anything that can be bought and sold, the price of housing is affected by demand and supply: the number of buyers (and how many properties they want to buy), and the number of houses being offered up for sale. Property price growth is generally determined by which of these is stronger.

Now, adding more residents to a country does increase demand for housing. After all, they need a place to live. But just how much does that affect housing costs? The biggest effect on........

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