"My ECON 101 taught me about supply and demand" well, the cost...

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pintohoo

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21/02/21

01:51

Post #: 51187640
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Originally posted by Drhip ↑

Another thread re the house price, yes it is boring ikr.
But one thing in my mind is that AUS has lots of land, yet the house price is among the most unaffordable. Why is this the case?

Can we just simply build more houses and units all across the country or where we have this #$% issue ?

My ECON 101 taught me about supply and demand - the strongest equation that can solve 1001 problems in the world.

So I assume if we have more houses/ units then what people need then problem should be solved?
Is this that easy or there is something else that I dont know so that this crazy house price cant be addressed this way?

Shall we discuss and find a solution for this together

Thanks in advance for any inputs

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"My ECON 101 taught me about supply and demand"

well, the cost of housing is due to the high speculative price of the land houses sit on

so - since Oz does have heaps of land - then, is the supply and demand idea working at all??

ok fair enough - developed land ------------ but, if it's the case that you could sell developed land like hot cakes - then, why isn't everyone a developer?

there's land everywhere ----------

the supply demand idea breaks down in Oz because of a myriad of issues - one of which is the way things are valued ------

banks have a vastly different idea of valuing things

that alone slides things sideways

Aussies value things rather differently - one can see it in how we have the biggest personal debt on planet earth - yet - people seem comfortable with that

like covid gave us a start - I suggest having the biggest credit card on the planet will one day bite very hard on the arse
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