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God the housing shortage in Canberra and Australia is annoying.

By Maxwell - 15 January 2012 104

This is a dead set joke. Don’t try and tell me it has always been like this – I wasn’t born yesterday. Around the year 2000 housing was CHEAP and PLENTIFUL !

I think what happened was around 2006 – 2011 all of the kids of the baby boomers started leaving home and getting jobs and all of that stuff and this created a mini ecoomic boom but also there wasn’t enough housing on the market to cope.

Think about it, in 2004, you had 3 kids at home, 2 at university, then in 2007 they both up and moved to canberra or got jobs in their own towns/cities and wanted to rent a place.

What is the main type of housing being built at the moment ? Apartments. Who wants apartments. Young people. Says it all really.

What’s Your opinion?


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104 Responses to
God the housing shortage in Canberra and Australia is annoying.
The Antichrist 10:40 pm 15 Jan 12

Maxwell said :

I’m simply referring to a demographic shifts, where a large group of people who used to live at home all moved out at once

Yes I am sure that every baby-boomer kid born, has moved out within a couple of years of every other baby-boomer kid.

Not.

Your logic is intrinsically flawed. The age spread of those kids will be 15 to 20 years. A generation of kids are not all born within 3 or 4 years of each other.

arescarti42 10:34 pm 15 Jan 12

The Traineediplomat said :

Isn’t it more about the willingness of financial institutions in the late 90s till now giving easy loans to almost anyone, both that could afford and those that couldn’t that caused a flow of money / increase in bricks and mortar? Yes I’ll admit that “baby boomers” were more likely to afford the loans and didn’t sell their existing properties, my parents did that as well, but banks giving 100%+ loans also meant that people had ‘more money to spend and so prices went up’

Ding ding ding ding ding! Folks we have a winner.

More than anything else, deregulation of the banking industry and the influx of of non bank lenders (Aussie, Rams, etc.) in the 1990s who were suddenly willing to lend hundreds of thousands of dollars to anyone who could fog a mirror were the driving force behind increasing house prices.

Maxwell 9:37 pm 15 Jan 12

The Traineediplomat said :

Maxwell said :

Gen y are regarded as the children of the baby boomers, gen x (which you are part of), are too, however the whole point of gen x is that they’re a relatively small minority that no one really notices or cares about. So the impact of you moving out of home would have been small.

What a load of crap. Firstly you can’t slice and dice generations ‘since’ the baby boomers that easily. I’ve seen Gen X and Gen Y’s “dates” listed as all over the place. Given my parents were born in the mid-late 1940s and qualify as Baby Boomers by that definition, I fall into the child of a baby boomer definition as well. Just like the earlier poster I am well into my 30s.

But stating that Gen X doesn’t ‘count’ simply because they don’t fit into your whinging definition or that it is a minority is a bunch of crap. Isn’t it more about the willingness of financial institutions in the late 90s till now giving easy loans to almost anyone, both that could afford and those that couldn’t that caused a flow of money / increase in bricks and mortar? Yes I’ll admit that “baby boomers” were more likely to afford the loans and didn’t sell their existing properties, my parents did that as well, but banks giving 100%+ loans also meant that people had ‘more money to spend and so prices went up’

Just getting my knickers in a knot I guess, for no reason. But the OP started the whinge!

Golly gosh. I don’t expect people to agree with me but what an emotional tangent !

I’m simply referring to a demographic shifts, where a large group of people who used to live at home all moved out at once.

You can carry on all your like about whinging or about how cosmo quoted a different date for gen y when you were reading about nail polish but it is really beside the point.

Deref 9:21 pm 15 Jan 12

“Think about it, in 2004, you had 3 kids at home, 2 at university, then in 2007 they both up and moved to canberra or got jobs in their own towns/cities and wanted to rent a place.”

If you had five kids, then you’re the source of the problem.

Rusalka 8:32 pm 15 Jan 12

The generation argument is moot as it is completely subjective depending on who’s is drawing the line when. In 2000 I was 16, however my father was born in 1935. Does this make me Gen X or Y (as I have seen my birth year inside the “definitions” of both)? However I have baby boomer friends who have parents the same age as my father. Does that make me technically a boomer?

Our “generations” that are referred to culturally, including in the OP, are flawed and arbitrary. It just comes down to our need to define the “other”.

The Traineediplomat 7:20 pm 15 Jan 12

Maxwell said :

Gen y are regarded as the children of the baby boomers, gen x (which you are part of), are too, however the whole point of gen x is that they’re a relatively small minority that no one really notices or cares about. So the impact of you moving out of home would have been small.

What a load of crap. Firstly you can’t slice and dice generations ‘since’ the baby boomers that easily. I’ve seen Gen X and Gen Y’s “dates” listed as all over the place. Given my parents were born in the mid-late 1940s and qualify as Baby Boomers by that definition, I fall into the child of a baby boomer definition as well. Just like the earlier poster I am well into my 30s.

But stating that Gen X doesn’t ‘count’ simply because they don’t fit into your whinging definition or that it is a minority is a bunch of crap. Isn’t it more about the willingness of financial institutions in the late 90s till now giving easy loans to almost anyone, both that could afford and those that couldn’t that caused a flow of money / increase in bricks and mortar? Yes I’ll admit that “baby boomers” were more likely to afford the loans and didn’t sell their existing properties, my parents did that as well, but banks giving 100%+ loans also meant that people had ‘more money to spend and so prices went up’

Just getting my knickers in a knot I guess, for no reason. But the OP started the whinge!

WilliamZ 6:39 pm 15 Jan 12

It will really be annoying when the housing “bubble” bursts to own a mortgage worth much more than the property!

m_ratt 6:31 pm 15 Jan 12

screaming banshee said :

Check your dates, baby boomers kids would have well and truly moved out by 2000.

I’m the eldest child of two baby boomers (Dad from the start of the boom and Mum from near the end – a fair age gap). In 2000 I turned 17. In 2000 my sister turned 12.

Children of the eldest of the baby boomers would likely have moved out by 2000, however the majority would not have.

Maxwell 5:05 pm 15 Jan 12

dixyland said :

Maxwell said :

screaming banshee said :

{insert miscellaneous housing affordability whinge here}

Check your dates, baby boomers kids would have well and truly moved out by 2000.

What is the best way to pack more ‘homes’ into a given area of land? Apartments. Who builds apartments. Builders who want to make money. Says it all really.

The oldest of the baby boomers kids (gen y) would have been 16 in the year 2000.

The reason apartments are built is because you can house more people on a small amount of land. t
There is a shortage of apartments in Canberra for single people to live.

When was the last time you tried to rent (or even buy) one ?

$280 for a tin-shed bed sit in someone’s back yard. What is this? A third world country ?

Very little if any of what you said makes sense. I have no problem with people ranting – that is one thing the internet is great for – but yours seems as factual as Today Tonight.

The baby boomer generation started after WW2 which finished in 1945. I’m the youngest child of baby boomers and I’m 35 – so I was 23 turning 24 in 2000, not 16 like you mentioned.

Also, do you even know what a third-world country is? $280 is a lot of money for people in one of those countries.

Gen y are regarded as the children of the baby boomers, gen x (which you are part of), are too, however the whole point of gen x is that they’re a relatively small minority that no one really notices or cares about. So the impact of you moving out of home would have been small.

Also, yes $280 is a lot of money in the third world, which is why it is astounding that sub-standard accomodation is so expensive in first world country in a supposedly well off part of the country.

dixyland 3:56 pm 15 Jan 12

Maxwell said :

screaming banshee said :

{insert miscellaneous housing affordability whinge here}

Check your dates, baby boomers kids would have well and truly moved out by 2000.

What is the best way to pack more ‘homes’ into a given area of land? Apartments. Who builds apartments. Builders who want to make money. Says it all really.

The oldest of the baby boomers kids (gen y) would have been 16 in the year 2000.

The reason apartments are built is because you can house more people on a small amount of land. t
There is a shortage of apartments in Canberra for single people to live.

When was the last time you tried to rent (or even buy) one ?

$280 for a tin-shed bed sit in someone’s back yard. What is this? A third world country ?

Very little if any of what you said makes sense. I have no problem with people ranting – that is one thing the internet is great for – but yours seems as factual as Today Tonight.

The baby boomer generation started after WW2 which finished in 1945. I’m the youngest child of baby boomers and I’m 35 – so I was 23 turning 24 in 2000, not 16 like you mentioned.

Also, do you even know what a third-world country is? $280 is a lot of money for people in one of those countries.

Maxwell 3:16 pm 15 Jan 12

screaming banshee said :

{insert miscellaneous housing affordability whinge here}

Check your dates, baby boomers kids would have well and truly moved out by 2000.

What is the best way to pack more ‘homes’ into a given area of land? Apartments. Who builds apartments. Builders who want to make money. Says it all really.

The oldest of the baby boomers kids (gen y) would have been 16 in the year 2000.

The reason apartments are built is because you can house more people on a small amount of land. t
There is a shortage of apartments in Canberra for single people to live.

When was the last time you tried to rent (or even buy) one ?

$280 for a tin-shed bed sit in someone’s back yard. What is this? A third world country ?

Felix the Cat 2:51 pm 15 Jan 12

I doubt there would be enough builders to do the work even if LDA did release more land.

As for apartments, it’s a bit like the chicken or the egg and which one came first. Developers build them because they make more money buy squeezing multiple dwellings on the same block that would normally only have one but then more and more people only want (or can afford) an apartment because of their busy lifestyle and don’t want to be a slave to a garden.

screaming banshee 2:49 pm 15 Jan 12

{insert miscellaneous housing affordability whinge here}

Check your dates, baby boomers kids would have well and truly moved out by 2000.

What is the best way to pack more ‘homes’ into a given area of land? Apartments. Who builds apartments. Builders who want to make money. Says it all really.

arescarti42 2:45 pm 15 Jan 12

Weird post.

The notion of a “housing shortage” is mostly bullshit pedaled by the HIA, REIA and other groups with a vested interest in the housing market. The way markets work is that when there is a shortage, the price rises until supply meets demand and there is no shortage anymore.

At the moment what we have is an oversupply of housing in most places in Australia, with the possible exception of NSW. This is evidenced by the massive amounts of housing stock sitting on the market and not selling, with Melbourne and Brisbane in particularly bad positions. Canberra is not an exception to this.

The comment you make about the children of the baby boomers is interesting but unsubstantiated. The baby boomers are a generational cohort spanning 20 years, the children of the oldest boomers would have started leaving home in the 1980s.

As for why apartments are currently so popular, I’d suggest that it is not that young people want apartments, but that land is so expensive that apartments are all that young people can afford. It is also true that apartments are very popular as speculative investments.

justsomeaussie 2:36 pm 15 Jan 12

It’s simple economics. The baby boomers cashed in on their massive real estate win post 2000. They saw their properties double and triple in value. They didn’t sell their properties, only leveraged the equity to buy more apartments for rent. So we have a high number of 50+ aged people owning multiple homes keeping the prices way too high. The LDA won’t release too much land as the managers are the same group of baby boomers. Releasing land would lower their equity, so they don’t want that.

Look at it this way. Houses can only be built at a set rate. So that’s a medium to low level of supply. But demand is high. So we have high prices. What does the government do? It creates more incentives for people to buy. Further increasing the demand and further increasing the prices.

The system is backwards.

What they should be doing is encouraging people to sell who have multiple investment properties. By doing so increases the level of supply and therefore levels out the demand and prices.

Any more first home grants, stamp duty exemptions and incentives just go to the seller not the buyer. If I give everyone 10k to help buy a car the dealerships can just charge 10k more because you still need a car.

But we are screwed in the end because those who make the rules have the most to lose if the property market changed.

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