Aussies hold a 'dangerously disproportionate' share of wealth in housing

by Mackenzie McCarty25 Feb 2013
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.


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