There are two issues with housing: its unaffordability and the current undersupply of homes.

Similarly, there are two aspects of house prices: the price of the house itself and the price of the site on which it is constructed.

And according to Australian Bureau of Statistics’ figures, the average land component of housing has now become 87%!

Everybody is ignoring the unaffordability of the land on which our homes are built.

Land prices may be reduced by taxing land values more and taxing other things less. However, as banking, real estate, media, homeowners and politicians are not inclined to do this, we have a real problem.

If we were to fix the undersupply of dwellings, it’s unlikely to reduce the price of the land much, if at all, so our problems with unaffordable housing will remain …..

…. Until the next bust.

Just sayin’.