He says US markets with responsive land-use regulation remained affordable and experienced relatively low house price volatility throughout the bubble/bust period.
“In Georgia [USA], policies mandating lending to the poor and under-privileged resulted in massive subprime lending, yet, Georgia’s delinquencies never reached the levels of the supply-restricted bubble states. Big demand ‘shock’ from the GFC caused rate of household formation to plummet as individuals increasingly opted for group housing.”
This, in effect, turned a perceived housing shortage into a glut.
But could the group housing option viable in Australia? Yes, says van Onselen – and it’s actually already started to grow in popularity.