Under Supply Economics

Unless you’ve stayed off grid in a utopian paradise since COVID, you’ve heard about a housing supply crisis and the havoc it’s wreaking on Australia’s future. The problems are mounting:

- construction has trended down

- ⁠approvals of new homes are down

- ⁠interest rates are up

- ⁠material costs are inflated

- ⁠construction costs are up

- ⁠wages are up so up goes the cost of trades and its harder than ever to find the labour we need.

In short, builders just can’t afford to build the way they did in the past!

We are rethinking how we do development, to turn this around.

These may sound like economics problems, but we’ve been short on housing supply for two decades, and it’s hitting hard on Aussies and the great Australian dream. Home prices are pushing up, mortgage repayments are half of every dollar a median earner makes and rental demand is out of control.

Fundamentally, Australia is not building enough homes to keep up with demand and Qld and NSW lead the way on that undersupply. We need to build more, sooner to meet this need.