As many of us have seen, there is a current trend of people breaking into houses and abusing squatters’ rights because of how serious the housing crisis has become.
However, the housing crisis is being blamed on many different things without addressing the elephant in the room. And I’ve noticed that many people don’t fully understand the situation, which is actually quite simple. So instead of arguing, I believe I can help.
Supply and demand 📈:
To make things easy, Lets imagine that there was only one person to a house and that they move houses from time to time and that they only need one house but may own more.
If there were 10 houses, and 10 people, then the price of each house would be somewhat stable.
If there were 10 houses and only 8 people, then the price of housing would fall because there are unneeded houses. In this scenario, there’s no point paying a normal price for a house because there’s more than enough.
Its easier to see this if we say that there is 1000 houses and only 8 people. Then houses would be nearly worthless.
Now lets flip it. If there were 10 houses and 12 people, the price of housing would rise. This is because there is 2 people who don’t have a place to live. So now in this scenario, they will pay more than usual since there is not enough houses. This competition continues, driving up the price.
Again, its easier to see this if you imagine that there are only 8 homes, but 1000 people. The inverse of before.
Now lets apply this to our situation 📈:
Our country has over 25 million people in it. Many family homes, apartments, studios, acreage etc. but we’re also taking in half a million people per year. This means that there will be a shortage of housing unless this demand is met via the supply of housing.
Houses could be built to suit, but a lot of the migrants are either students or uneducated people from third world countries. If we were importing a healthy amount of foreign tradies, the situation could start to get better, but that is not what’s happening.
On top of this, land is still required, on top of that, all the other materials and knowledge to go about the job and daily life.
Also land is becoming, shockingly, harder to come by. Over 60% of Australia is now under native title and is not allowed to be owned by any undesirable races- I mean, not allowed to be owned by oppressive White and Asian colonialists…
So the supply for all the things needed for houses to be built is low, and the demand for houses is very high because of mass immigration.
This is the reason why house prices are going up.
And I haven’t even touched on inflation, where the supply of money is going up making it less valuable per unit with wages failing to keep up.
So to summarize:
Supply: Construction⬇️, tradies⬇️, Materials⬇️, currency value⬇️, land ⬇️
+
Demand: Immigration⬆️
=
House prices: ⬆️📈📈📈
So, the simplest and best solution to the housing crisis is to cut immigration. Breaking into people’s homes will not solve the problem, that’s just stupid.
Alex James.