This comment was made at Macrobusiness (link may be locked – but there is a free trial available)
Good to hear but vacancy rates across Sydney are still very low (circa 2%).
When those vacancy rates have a high 3 or preferably a 4 or even 5 at the start then we will start to see the results of landlords meeting a market where the tenant has reasonable alternatives on offer when looking for a rental property.
There is nothing abnormal about a rental market where some properties remain empty for extended periods.
Only when that state of affairs exists do landlords pull their finger out and repair properties and upgrade them to attract tenants and offer longer term leases as a selling point.
For far too long – cats bottom tight vacancy rates have allowed sloppy, lazy and greedy landlords to get away with a substandard product.
And if that sounds too much like hard work for the average dud landlord – they can always sell their property to an owner occupier.
Build baby build – at least until rising unemployment puts a halt to the population ponzi policies.
It may not but most politicians, even the most ideological, know that rising unemployment does not make them look good.
Mr Abbott’s colorful description last week of rising unemployment illustrates the sensitivity.
If unemployment continues to rise – the government will be forced to review policies on migration and work visas.
Not because they want to (some of them may actually persist in believing that rapid migration into a houses and holes economy will grow employment or love the idea of driving down wage rates with guest workers) but because they know that the politics of rising unemployment will be lethal for them.
If the LNP have any desire for re-election they need to start junking a lot of neo-liberal myths and fairy tales as quickly as possible. Hello Mr Robb!!
If they move quickly they may leave the ALP stranded peddling neo-liberal fantasies after their use by date has passed. Bowen , Husic and Wong are the worst offenders at the moment.
Ed Husic’s spirited defence of foreigners and temporary residents being allowed to buy up existing homes is a great example of the ALP losing the plot.