This paper argues that regulatory constraints suppress housing supply. Where this results in a deficit in locations of high demand, it creates a persistent and growing gap between household incomes, rental costs and dwelling prices. The paper examines a range of metrics across different states to establish the relative extent of rising dwelling prices. 

While housing inflation is found to affect all states and all Australian capital cities, it is found to be worst in New South Wales (NSW). The paper examines NSW in greater detail.

The paper suggests that that without significant reform, Sydney risks continuing to lose essential workers – including teachers, nurses, police officers, and aged care workers – because they can’t afford to live in the communities they serve. Sydney's housing affordability crisis is being directly fuelled by excessive government regulation, the highest property taxes in Australia and complex planning requirements.

Recommendations

1. Make housing supply a legislated objective of planning laws.
2. Coordinate the rezoning of land with infrastructure delivery.
3. Stop taxing housing supply.
4. Abolish stamp duty.
5. Stop over-regulation.
6. Building design and construction regulation must be slashed.
7. Drive cultural change.