Policy Forum Pod: Australia’s dependence on housing

Abstract

Australia’s housing crisis: Housing is one of the biggest drivers of our economy, but it is also at the core of the biggest financial hardships people are facing.

Dr Nicholas Frank lays out why house prices skyrocketed in the 1980s and how the availability of credit became vital for families to survive with rising costs of living.

The consumption aspect of the economy currently depends on the wealth generated by increasing house prices. While this has led to wealth inequality, it has also contributed to rising income inequality. Additionally, it poses environmental concerns, as there is often insufficient regulation in place for emissions in the construction of homes, which further exacerbates the problem.

This episode is the first in a miniseries on Australia’s housing crisis, so stay tuned!