subscribe to our newsletter sign up

‘Red tape’ contributing to growing house prices

Mortgage stress, housing affordability, Australian housing, housing supply, property investing, Master Builders, Denita Wawn,

A number of ‘hidden’ costs and regulatory arrangements are pushing up house prices, and in turn the cost of living, a new report has found.

An independent study by Cadence Economics, commissioned by building and construction lobby group Master Builders, has suggested that “hidden land costs and red tape” are driving rising house prices.

“Surging house prices are stretching household budgets and placing more families under mortgage stress,” said Denita Wawn, the lobby group’s CEO.

In fact, Ms Wawn said the impact that red tape is having on house prices means that many Australians are now “paying more for land than they are spending on building their new home” and that some of these regulatory restraints have also prevented supply of new houses matching pace with demand over the last 10 years.

“Previous analysis by Master Builders has shown that increased infrastructure investment outlined in the federal budget could result in an additional 93,000 new homes by 2021, which would go a long way to closing the gap with the government’s estimated housing shortfall of 100,000 dwellings,” she said.

“This new report shows that removing regulatory constraints at the state and territory level will be essential to unlocking this new supply.”

Master Builders said that regulatory reforms could “unlock the supply of more new homes” and assist with the affordability of housing within the country.

‘Red tape’ contributing to growing house prices
nestegg logo
subscribe to our newsletter sign up
Recommended by Spike Native Network
Anon - I believe you are all missing the point. In this example the member "who was wholly invested in cash and paying an adviser service fee every month",.......
Anonymous - Mr Hodge was giving general advice -- cash is bad in all situations is not personal. It is however wrong.....
Isla Nettlefold - Hi Dan, can you please tell me how FACTA might effect me, a 74 year old retired American widow living in Adelaide? I have some rental properties that.......
Adam Goldstien CFP - There are justifiable reasons why a 70 year-old member would choose or an adviser would advise - a client be invested in cash; imminent retirement,.......