The concept of building one and two bedroom houses instead of the traditional three and four bedroom homes seems doomed to failure. More adult children than ever are going back home to live with their parents. A single person simply cannot earn enough to get a loan for a house. If you are a labourer or a TAFE trained worker this is increasingly the case. As many as 70 per cent of people aged under 35 cannot buy a home of their own.
While specialists say tax incentives are needed to enable young people to buy, this is not the problem. Australia will have a housing shortage for decades because there are not enough qualified builders in outback Australia. This is particularly the case in booming Western Australia with mineral companies being forced to have accommodation built at great cost.
Giving the young tax breaks and just giving them handouts is not a solution. It is a bottom up issue not a top down problem. Getting trades persons from other countries will not make any difference either. Countries have unique building codes. For example, in the UK houses are built in double brick where the two walls hold up the roof. In the US they built much larger houses. In Australia brick veneer is the norm where timber holds up the roof and bricks are just decoration.
The next Australian government will probably be Liberal/National. They will not be inclined to give handouts. Moreover, with the push toward a balanced budget next year the current Labor government has no money to spare.
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