Huge warning sign for Australian economy, page-77

Something you may be overlooking is that housing construction is a very large industry. Without negative gearing, less investment = less houses built means more tradies out of work, in turn affecting distribution, hardware, retail & etc down the line.

The uplift drive in WA house prices was caused by the mining boom and frivolous people with too much money.

The unfortunate situation we have now is that despite ridiculous household debt and mortgage stress, the government is too afraid to lift interest rates for two reasons.
1) due to the housing construction sector mentioned above and 2) because doing so will cause a further slide in house prices causing people to feel less wealthy and tighten discretionary spending, affecting retail and other sectors of the economy. This despite Melb and Sydney house prices still 50% up from 2012.

So instead of managing the pain and guiding us down softly (which government will take the responsibility for that?) , we spiral ever higher until the inevitable.