This comment was made at Macrobusiness (link may be locked – but there is a free trial available)
Good to see that Darwin has managed to hold on to that 3 but bad news to see that Melbourne has slipped back into the 2% zone – which is dysfunctionally tight.
Canberra at 2% ! – Could that be the Mr Fluffy effect?
And Sydney on 1.8%. Hobart 1.3% !! The choice is simple.
Stop the population ponzi or keep building until the vacancy rate rises to the high 3’s or better still 4 – 5%.
In due course policies that encourage people to use land efficiently (i.e. sell off spare bedrooms, share houses/rooms/beds) will help at the margins – assuming that even gentle encouragement for people to adjust their living arrangements ever finds a politician to support them – but in the mean time the solution is clear.
Build baby build.
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