An interesting take on the housing 'shortage'
http://www.crikey.com.au/2010/10/12/housing-shortage-dont-dwell-on-it-there-isnt-one/
I think the argument is reasonable one. The rental market is the only part of our property market that isn't distorted by varying credit conditions. You can't get a loan to pay the rent so the market is constrained by disposable income. There's no relaxing interest rates or lowering credit criteria to feed more money into the market so it's a real reflection of capacity.
http://www.crikey.com.au/2010/10/12/housing-shortage-dont-dwell-on-it-there-isnt-one/
I think the argument is reasonable one. The rental market is the only part of our property market that isn't distorted by varying credit conditions. You can't get a loan to pay the rent so the market is constrained by disposable income. There's no relaxing interest rates or lowering credit criteria to feed more money into the market so it's a real reflection of capacity.