Great Discussion, great questions, and several solutions all worth implementing.
But I put it to you that building for profit (private development) is not enough as it will simply plateau supply to where margins are optimal. CRA too propagates that position and that we need public supply too.
But I put it to you that building for profit (private development) is not enough as it will simply plateau supply to where margins are optimal. CRA too propagates that position and that we need public supply too.
Comments
That should reduce prices and rents (including for low-income renters) by a third or more.
To where price = marginal social cost.
Let's argue about whether that is enough then.
Why would we not expect that here?
Builders want to build.
1/2
Planning won’t solve that (?). Not that it doesn’t have a role to play.
2/2
Builders will build when sales price exceeds the cost of supply, which it does now.
Median sales price for a unit in Sydney is $813,000.
A simple demonstration that this exceeds the cost of supply is other cities, where units are being profitably supplied for less than $600,000. 1/2