Hi Infose, There are other issues with the classic supply and demand processes with housing. One that I am trying to address with some of the tax changes I talk about is rigidity in the market. It is too hard and expensive to move in Australia. The true market in Australia is not the total housing stock, but those available for sale. The smaller percentage of the housing stock available for sale, the greater the pressure on the marginal price. And housing turnover as a percentage of overall stock has decreased over the past decade. Throw in lots of boomers sitting on more space than they need ( with tax and social security driving a fair bit of that ) , a lot of our housing shortage may be a mirage.
