By Andrew Mackinnon
Last updated: 10th March, 2025
High house prices in Australia are caused by…
~ non-white immigration into Australia, which causes the number of people living in Australia to increase, thereby causing demand for residential properties in Australia in all forms, including houses, apartments and land, to increase and thereby causing house prices in Australia to increase.
Australia – Population and Demographic Data – 1900 to 2022
en.wikipedia.org/wiki/Demographics_of_China#Vital_statistics (Natural change equals births minus deaths.)
en.wikipedia.org/wiki/Demographics_of_India#Vital_statistics (Natural change equals births minus deaths.)
Non-white immigrants to Australia generally do not buy residential properties in Australia as soon as they arrive in Australia. It generally takes time for them to get their finances in order and save up a deposit in order to buy residential properties in Australia. There is generally a lag, often of years, between non-white immigrants to Australia arriving in Australia and demand for the purchase of residential properties in Australia in all forms, including houses, apartments and land, increasing as a result of their arrival in Australia.
This is why house prices in Australia continued to increase during the criminal fraud of non-existent COVID-19, despite that non-white immigration into Australia was greatly reduced during this time. Non-white immigrants to Australia who had arrived in Australia in previous years had already spent years getting their finances in order and saving up a deposit in order to buy residential properties in Australia, so that by the time the criminal fraud of non-existent COVID-19 transpired, they were ready to buy residential properties in Australia and did so.
Non-white immigration into Australia also provides a strong stream of tenants to create demand for residential rental properties in Australia, so that residential property investors can confidently earn rental income from their residential rental properties that they own as residential investment properties in Australia. Non-white immigration into Australia leads to an increase in demand for residential rental properties in Australia and an increase in rents. In the 1990s and 2000s, passive income in the form of rents from residential investment properties in Australia, being income earned without working for it, was marketed by the residential property industry in Australia as the holy grail of income. Australia’s economy has been built around this concept of passive income ever since.
Non-white immigration into Australia should be banned.
Banning non-white immigration into Australia, deporting non-white non-citizens of Australia (with the exception of genuine refugees, on compassionate grounds) back to their countries of origin) and repatriating non-white Australian citizens, on a voluntary, financially incentivised basis, back to their countries of origin would cause house prices in Australia to decrease by at least 30%, which is unavoidably necessary in order to make housing more affordable in Australia.
~ allowing non-citizens of Australia to purchase and own residential properties in Australia, which increases demand for residential properties in Australia, thereby causing house prices in Australia to increase.
That the Australian federal government has not banned the purchase and ownership of residential properties in Australia by non-citizens of Australia shows that the Australian federal government does not govern exclusively for Australian citizens but for non-citizens of Australia also, of whom there are purportedly more than 8 billion (i.e. 8,000 million). Allowing non-citizens of Australia to purchase and own residential properties in Australia causes the number of people who want to purchase and own residential properties in Australia to increase, thereby causing demand for housing in Australia to increase and thereby causing house prices in Australia to increase.
Allowing non-citizens of Australia to purchase and own residential properties in Australia should be banned.
Banning the purchase and ownership of residential properties in Australia by non-citizens of Australia would cause house prices in Australia to decrease by at least 15%, which is unavoidably necessary in order to make housing more affordable in Australia.
~ unrestrained bank lending to owner occupiers of residential properties in Australia and investors in residential properties in Australia, which causes the size of the money supply in Australia to increase, since banks in Australia create money when they lend and charge interest on it, thereby causing house prices in Australia to increase.
It is not the number of residential properties in Australia that owner occupiers and investors can buy that should be limited or rationed but necessarily the amount of credit that is extended by the banks in Australia (i.e. loaned) to owner occupiers and investors that should be limited or rationed, in order to prevent a housing bubble in Australia from materialising, which has, of course, existed in Australia for years now and is being deliberately perpetuated by the Australian federal government via non-white immigration into Australia.
The banks in Australia should not be lending more than an adjustable multiple of the incomes of owner-occupiers of residential properties in Australia and an adjustable multiple of the incomes of investors in residential properties in Australia, to owner-occupiers and investors for all borrowing purposes, including the purpose of buying residential properties in Australia as owner-occupiers and investors.
The banks in Australia should never have been allowed by the Australian federal government (which licenses the banks in Australia to operate) to provide interest-only loans to owner occupiers and investors in Australia.
The banks in Australia should be banned by the Australian federal government from providing interest-only loans in Australia for all borrowing purposes, including the purpose of buying residential properties in Australia.
In the order of 2 million Australian citizens (and presumably non-citizens of Australia) own one or more investment properties in Australia and are therefore investors in residential properties in Australia.
In round terms, one-third of the population of Australia of circa 27 million rents, being circa 9 million people.
Many of these 2 million Australian citizens (and presumably non-citizens of Australia) are seeking to increase the number of residential properties they own in Australia as investments. Since they are overwhelmingly funded by lending from the banks in Australia, rather than their own accumulated wealth, the willingness of the banks in Australia to lend much more to investors in residential properties in Australia as multiples of their incomes than is prudent (in order to increase their interest revenues, since the banks in Australia are motivated by profit, which is marketed to Australian citizens by the Australian federal government as being a sign of a “strong banking system in Australia”) is presumably resulting in multiple investors in residential properties in Australia competing with each other to buy many residential properties in Australia listed for sale, thereby bidding up the sale prices of many residential properties in Australia and thereby contributing significantly to the existing housing bubble in Australia.
Restraining lending by the banks in Australia to owner-occupiers of residential properties in Australia and investors in residential properties in Australia by limiting it to an adjustable multiple of the incomes of owner-occupiers of residential properties in Australia and an adjustable multiple of the incomes of investors in residential properties in Australia for all borrowing purposes, including the purpose of buying residential properties in Australia as owner-occupiers and investors, would cause house prices in Australia to decrease by at least 15%, which is unavoidably necessary in order to make housing more affordable in Australia.
~ negative gearing, which increases demand for residential properties in Australia, thereby causing house prices in Australia to increase, by allowing the tax deductibility of residential investment property losses against other sources of income, such as salaries and wages, even though it is not necessary to incur those losses in order to earn those other sources of income.
A bedrock principle of income tax law in Australia has always been that deductions against income must be expenses that were necessarily incurred in order to earn that income. The deductibility of residential investment property losses against other sources of income, such as salaries and wages, violates this principle.
Without negative gearing, the overwhelming majority of residential property investors would not be able to afford to meet the repayments required by the mortgages they took out to purchase their residential investment properties in Australia and therefore would not have been able to purchase their residential investment properties in Australia in the first place. Negative gearing therefore makes purchasing residential investment properties in Australia more affordable for residential property investors, thereby causing demand for residential investment properties in Australia from residential property investors to increase, thereby causing demand for residential properties in Australia to increase (whereby residential property investors compete with owner occupiers in order to purchase residential properties in Australia) and thereby causing house prices in Australia to increase.
Banning negative gearing would cause house prices in Australia to decrease by at least 15%, which is unavoidably necessary in order to make housing more affordable in Australia.