Your Money interview - High quality of life and high property prices
People worry that property prices might collapse. But they really need to understand the long term reasons for why Australian capital city suburban property is expensive. In short, it’s because the quality of life is so good in Australia that demand will always outpace supply.
In this interview with Jason Kazanis of Your Money, Jarrod McCabe builds on Richard Glover’s new book, The Land before Avocado, to explain that the things that make Australia so attractive have also inevitably led to higher property prices, namely:
- The emancipation of women and the rise of the double-income family
- Better access to credit that helps smooth income volatility
- Reduction in tariff walls and other protection measures that has delivered higher incomes and more choice.
Whilst poor affordability is of course a challenge, it’s kind of a good challenge to have. If property was cheap it probably means the economy – and society more generally – is a basket case.
(Interview 7.45am Friday 9 November 2018. 7 minutes 30 seconds video. May see a very short ad at start).