Ben Phillips (ANU), one of Australia’s leading econometricians, joined the Renegade Economists radio show last week to discuss his report Regional Housing Supply & Demand. The report held a critical lense up to the ubiquitous supply side argument. Is it really the most effective housing affordability tool? We also discussed the future of economic modeling and …. of course, the need to model economic rents. Ben regularly appears on the ABC as a ‘fact checker’ to verify contentious issues such as whether negative gearers typically earn $80,000 or less.
Key report facts:
- house prices effectively decoupled from income growth around the year 2000
- over the past 17 years real house prices outgrew:
- prices by 117 per cent
- incomes (as measured by GDP per capita) by 71 per cent,
- and rents by 95 per cent.