this post was submitted on 06 Sep 2025
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You seem to be under the impression that we will just magically build and build if people are gone, but that's not realistic. My point was that reducing immigration would significantly cut the number of houses built under the current housing market. We may be building too few homes now, but I doubt much at all will be built after cutting immigration either.
The problem is not that we have a housing market that's too big, it's that we have a broken market. Housing entering the market in this country may be insufficient when demand is high, but it's straight up not entering the market where demand is low, and housing prices are higher than ever everywhere. We need to figure out why the market is broken and fix that if we even want so see housing prices stabilise for an extended period, let alone fall. Reducing immigration is a distraction at best.
The number of people coming in to the country is FAR exceeding our ability to build. The first thing we need to do is reduce our intake (reduce demand) so we can catch up. I'm not saying we need to stop ALL immigration, just that right now, reducing immigration is one of the few levers we have to help alleviate the crisis. Then we can talk about removing Negative Gearing and Capital Gains Tax Concessions, maybe even put some limits on property investing.
What would you say are limiting factors on our ability to build then, if you think reducing immigration won't significantly reduce housing construction?
Why do you say immigration a lever to pull but not the factors limiting construction?
The limiting factor is government red-tape. It costs a lot of money and can take years just to get the approvals to start building.
Not to mention our whole tax system is geared to favor the rich. (Thanks Howard!)
I do agree with that, I suppose we probably disagree with the speed reforms can take then.