By Andrew Mackinnon
Last updated: 1st October, 2023
The housing market in Australia is not a free market. The Australian federal government has intervened in the housing market in Australia since 1947 by allowing more than 8.6 million immigrants to move to Australia, who subsequently had at least 4.3 million children, which combined is almost half the current population of Australia of about 26 million. This dramatic increase in the population of Australia has increased demand for housing in Australia and thereby increased house prices and rents in Australia. The housing market in Australia is therefore a rigged market, courtesy of the Australian federal government.
In fact, the increase in the cost of buying a house or apartment over the past five decades and longer has been so conspicuous that economists in Australia do not take the cost of buying a house or apartment into account when calculating the Consumer Price Index (CPI) in order to determine the rate of inflation in Australia.
For other causes of increasing house prices, please see: