Why Is There a Housing Shortage?

"Housing shortages can lead to increased homelessness, higher rents, and a decline in overall quality of life. When people cannot find affordable housing, it affects their health, education, and job opportunities." - Matthew Desmond

Why is there a housing shortage?

In an earlier post, I commented on a New Zealand startup, Bloxx, whose mission is to put more Kiwis into their own homes. As I researched this subject more, it appeared to me that this is an issue in every developed Western country. It’s a complex issue, but one that has been resolved in Singapore.

@SWOODY183 explains how Singapore overcame their housing shortage. He commented on this video:

Why We Left Australia And May NEVER GO BACK. YouTube Lloyd and Mandy. 2 months

ago.

Comment from:

@SWOODY183, 2 months ago

"I'm from Australia but have been living in Asia for 20 years. I cannot believe what has

happened to property in Australia. So let's look at a country which has addressed the same problem, Singapore. They had escalating property prices but acted on it. They, like Australia, have onerous property taxes levied at the time of purchase. They dramatically increased stamp duty on purchases of second and third homes. By dramatically increased, I mean in the order of 200 to 300%. If you were a foreign national buying Singapore property, same thing. Also, they restricted “flipping.” If you were in these categories, then you could not sell for five (I think) years. That stopped the price increases in their tracks.

Why they couldn't do something like that in Australia for my kids is beyond me. It's an

intergenerational steal from millennials to baby boomers. From millennials to overseas

investors.

If the Australian government tells you that there are complex reasons that they couldn't do something similar, then my response is, well, then the solution is above your pay grade, so we need to get someone else. This is a solvable problem, but it needs political will. The government members and the highest-paid sector in Australia, the public service, have a vested interest in this problem not being solved.

You pay so much tax in Australia, and the government has just messed everything up. Don't let them tell you it's not a high-tax country; it definitely is. I lived and earned money in Malaysia and Singapore; I know from first-hand experience.

Politically, I’m a pretty middle-of-the-road baby boomer, but the various Australian governments are expensive and utterly incompetent. You disagree? Well, how did this

situation arise? How is it that no one in the elected leadership saw this coming and did something about it before it became chronic? No political party articulated a problem that was just over the horizon (by this I mean, in time) and proposed solutions. It's pretty

disgusting when you think about it."

Is the housing shortage solvable?

In my opinion, it is solvable. If the current system continues in Australia, New Zealand,

Canada, and many others, where profit is the driver instead of it being a fundamental human need, one way or another, humanity will make the adjustment.