If anything Australia has stood out in the period since the international financial crisis for interest rates which, though low by our historical standards, were rather higher than those on offer in most of the developed world.And over recent years the same interest rates have been in operation in Perth, where prices first rose and then fell, in response to real economic factors – such as the mining boom and its aftermath.In Sydney, there is only so much harbour-front land, or other land within a short commuting distance to the CBD.
Our purpose is to provide an environment where people can choose a partner who shares most essential compatibilities with them.
Housing affordability seems to be a perennial topic of discussion, particularly in Sydney. The city and its environs are inhabited by an increasingly affluent and growing population, one in which the production and consumption of services and ‘experiences’, including housing services, form a growing part of our economic life.
That said, it is hard to avoid the sense that, for a country that ostensibly has so much space and relatively low population for its physical size, we seem to have ended up with the cost of shelter being quite high.
For Sydney in particular, the problems seem more acute than in other Australian cities.
Prices have risen further than elsewhere in Australia.
A host of explanations have been offered, and often they focus on one simple story.
The reality is almost certainly more complex and we should be sceptical of simple stories and the simple solutions that are usually offered with them.
A range of factors are likely to have contributed to the situation we face.
Some can be produced or replicated at marginal costs of virtually zero.
Some other goods, in contrast, cannot be so easily reproduced.