The states should be investigated for anti-competitive behaviour over their restrictive land release policies, a leading housing chief declared. Former Housing Industry Association president Bob Day yesterday said the strategies were creating a new era of lifetime renters. He blamed urban planners obsessed with curbing the size of cities for an "artificial" land shortage that was driving up property prices.
Now chair of the Institute of Public Affairs' Great Australian Dream project, launched last month by Treasurer Peter Costello, Mr Day warned of "horrendous" social consequences linked to the affordability crisis. In a speech to the Australian Christian Lobby's conference in Canberra, Mr Day said families were forking out $300,000 more on mortgages than they should. Until the early 1990s, the median house price had consistently been three times that of average household income. Sydney house prices were now more than eight times the average household income, and it was six times the average household income in the other capital cities.
"For those on middle and low incomes, the prospect of ever becoming home owners has now all but evaporated as they face the prospect of being lifetime renters," Mr Day said. Mr Day, a recently endorsed Liberal candidate for the South Australian federal seat of Makin, urged people to drive to the outskirts of major cities to see the "abundant" land suitable for housing. "The so-called land shortage is a matter of political choice, not of fact," he said. "Perhaps we should be asking the ACCC to investigate the anti-competitive behaviour of state and territory government land agencies, and their association with big land developers."
Mr Day challenged the attitude that the spread of suburbia damaged the environment and encouraged car use. He said planners who demonised urban growth had inflicted enormous damage on the economy without any scientific or intellectually sustainable arguments to support their dogma.
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