Population numbers: the elephant in the room
The first topic was about the most sustainable number for Australia’s population. This was based on an email inquiry I received from a FBI listener as well as an article I wrote for newmatilda.com. This population question has always been a sensitive one and has been described as ‘the elephant in the room’.
The article I wrote about this can be accessed here…
In essence, I argue that asking about ‘the correct size’ of the population misses the point because there are other issues surrounding sustainability. As you will see from the comments below the article, it caused quite a bit of controversy…
Housing affordability…
The second (related) topic was about housing affordability – who can afford a house in Sydney? This follows a recent report that shows housing affordability continues to decline.
This is a complicated issue with no quick fix solution – which was noted in a government inquiry no that long ago. The problem for a government is that if housing prices rise, it locks people out of the market; but if prices fall, it means that people have loans for a house that is higher than its value. This means they will try and sell it quickly and this causes a panic in the market and a downward cycle. It is this very process that led to the Global Financial Crisis.
If you have the time, check out the government report – but for me, there are three things that need to be done as a matter of urgency:
1. Focus on medium density housing: it is better to have a smaller city with more numbers that have sprawl. These have to be well designed and environmentally sensitive houses that are well serviced by public infrastructure such as schools, public transport and shops;
2. Change the taxation status for investment property: the fact that people buy into investment properties drives up the prices. It is a much too generous tax break and needs to be reviewed; and
3. Make renting more attractive: this means offering 5 to 7 year leases rather than 12 months. It means people have more security and are more likely to rent.
Finally, there will be an amazing forum this week as part of Mardi Gras: looking at homophobic violence in Western Sydney. It is on Thursday, 25 February at 5.30. Details are available here…
Thanks for listening and reading
Cheers, james
