Housing Crisis and Immigration: Australia's Tough Choices w/ John August - EP236

Economics Explored

This episode of Economics Explored features a deep dive into the ongoing housing crisis in Australia with John August, a Pirate Party of Australia official and Sydney radio host. Gene and John discuss the significant influence of immigration rates and building restrictions on housing availability and prices. They also consider potential policy solutions to ensure more equitable housing access, including developing a charter city named Turing.

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About this episode’s guest: John August

John August is the Treasurer of the Pirate Party Australia. John does computer support work in retail and shareholder communication. He is passionate about justice and ethics in our world, particularly as it plays out in law generally and intellectual property in particular. He has stood on behalf of the Pirate Party in the Federal seat of Bennelong and also as a Councillor for Ryde City Council.

Along with technology and law John is also interested in spoken word and poetry. He broadcasts on community radio and hosts the program “Roving Spotlight” on Tuesdays from noon-2pm on Radio Skid Row Marrickville Sydney, and writes about his ideas on the website www.johnaugust.com.au. You can keep up to date with what John is up to via his Facebook page:

https://www.facebook.com/profile.php?id=100063805005395

What’s covered in EP236

• Introduction. (0:00)
• Housing crisis in Australia, with a focus on supply and demand issues, affordability, and government policies. (2:44)
• Population growth, immigration, infrastructure, and housing affordability in Australia. (8:04)
• Housing affordability and land value taxation. (13:40)
• A Georgist approach to taxing land. (22:05)
• Immigration and foreign aid in Australia. (31:24)
• Reducing immigration and addressing housing challenges in Australia. (37:46)
• Immigration policy, infrastructure, and zoning regulations in Australia. (41:45)
• Potential for charter cities (e.g. Turing) and high-speed rail links. (47:34)
• Foreign aid, shipping, and taxation. (53:35)

Takeaways

1. The housing crisis in Australia is exacerbated by high immigration levels and stringent building restrictions, which affect affordability.
2. Policy debates are intensifying around whether to restrict immigration to ease housing demand or to relax zoning restrictions on development to boost supply.
3. The concept of "upzoning," similar to Auckland’s approach, could be a viable solution to create more housing in existing urban areas.
4. Proponents of high immigration levels often overlook the infrastructural and social costs associated with a rapidly increasing population through high immigration rates.
5. The discussion of housing involves not only economic metrics but also the quality of life and housing accessibility for all population segments.

Links relevant to the conversation

Leith Van Onselen on immigration and housing: https://www.macrobusiness.com.au/2024/04/albo-lies-his-way-out-of-rental-crisis/

• Previous episode with Natalie Rayment: https://queenslandeconomywatch.com/2021/04/16/missing-middle-housing-podcast-chat-with-natalie-rayment-of-wolter-consulting/
• John’s conversation with Cameron Murray on housing: https://www.mixcloud.com/Johnorg/roving-spotlight-28-november-reviewing-a-pirate-look-at-the-housing-market-with-cameron-murray/
• Freightened documentary about the cost of shipping: https://thoughtmaybe.com/freightened/

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Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au.

Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.