You know the remarkably high price of homes is now a top issue for our politicians, state and federal. But you may need reminding that house prices are an intergenerational issue.
As a general rule, the younger generation buys its homes from an older generation, which means rising house prices constitute a transfer of wealth from younger to older generations.
Unfortunately, this conflict of interests between the generations makes it unlikely the measures in the “housing affordability packages” the pollies say they’re working on will do much to limit the rise in prices.
Our problem in Australia isn’t so much fake news as fake government – governments that, lacking the courage to implement controversial solutions to problems, just create the pretence of solving them.