The Economy, Stupid What would it take to house a nation?
Jan 8, 2026
In this insightful discussion, economist Rory Robertson and ABC News business editor Michael Yander delve into the Australian housing crisis. They explore why housing feels unaffordable, the unique nature of homes as goods, and the limits of increasing supply. Both guests analyze tax changes that have fueled property investment and the implications on homeownership, particularly among millennials. They address the generational divide in housing, discuss potential policy reforms, and ponder whether the Australian dream is genuinely lost.
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Tax Shifts Supercharged Property Investing
- Tax changes halving headline capital gains tax in 1999 amplified investor appetite for property.
- That policy, combined with negative gearing, incentivised leveraging into housing over other investments.
Crisis Support Fortifies House Values
- The Reserve Bank and government effectively protect home prices during crises by cutting rates and stabilising markets.
- That safety net reinforces the perception that housing is a low-risk asset and supports prices long-term.
A Failed 40% House-Price Bet
- Michael recalled Professor Stephen Keneally's bet that Australian prices would collapse and his subsequent walk when prices barely fell.
- The Reserve Bank's rapid rate cuts during the GFC helped reverse price falls within a year.