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Housing Shortfall - any solutions?

Now we hear (though I'm sure it's been said before) that we are heading for a "dire housing shortage" which it appears cannot be fixed readily as our construction costs are too high.  News like this could stimulate the real estate market however we dont want to return to the price wars of the boom where prices spiralled upwards out of control at ridiculous rates.  So what's the solution?  Is it possible to provide affordable housing to all?  Who's to blame for the shortage? The Government? The developers? The builders? Let's stop the blame game isnt it time that Govt got together with all parties to create a solution that would stimulate the economy, provide jobs and housing at prices that not only provide a return for investors but are affordable.  Your thoughts please.......................Valeriex

       Comments

So -- what would happen if tax breaks were given for more efficient space usage in homes? By this I mean a single person moving into a 1-2 bedroom place gets maybe some sort of a tax break (or another reward) that they wouldn't get for moving into a McMansion. A large family could move into a large home for the same reward - as long as it's still not a massive mismatch between number of people and rooms. The advantage of this would mean when you start having babies you would automatically want to upgrade - it's in your interest to find somewhere bigger, freeing up your home for the singles and DINK couples, and generally shifting housing stock; people who need big homes wouldn't be priced out of the market by those not needing them. A whole new market might spring up for large bedroomed small homes. Developers would get a clue and start providing something smaller than 4x2 homes. It might be a crazy, unworkable thought but I am beyond incredulous at visiting single friends and couples in expensive, cavernous monstrosities which must cost the earth to power and could house an entire football club. Sheryl-Lee
31/03/2009 1:38:00 PM
I wish Economists would just shut up!! They didnt predict the mess we now find ourselves in but they are more than happy now to tell us how deep the mess will be, apparently hindsight is a great thing. For me I'll stick with the crystal ball it seems to work better than a University education. One expert economist last Sunday predicted that Australia was going to have its own subprime crisis. I have my doubts about that, our Banks may have been over zealous in some of their lending practices but they were far more conservative than the Yank Banks. I guess only time will tell, but honestly if you didnt see this coming please dont now use your expertise to now tell me how bad it's going to be. The Rant Valerie Haskins
26/03/2009 3:24:00 PM


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