Part 5/9:
Such reflections from Canada's experience caution Australian policymakers against the allure of treating symptoms rather than root causes. The core issue remains the costly regulations surrounding construction and homeownership that prevent adequate housing supply.
A Consequential Cascade of Economic Impact
The anticipated outcome of the Australian ban is troubling. It could lead to a detrimental cycle: fewer buyers generally result in fewer transactions, which disincentives builders from developing new properties. When developers sense a less lucrative market, they might decrease investment in residential projects, thus stalling growth in housing availability even further and perpetuating high prices.