Man's blistering two word description of housing market trends now
One of Australia's top economists has described housing in Australia as a 'misery machine' and a 'terrible experiment' gone wrong.
Economist Chris Richardson told ABC's Q&A program house prices were reaching record highs, despite the Reserve Bank's 13 interest rate rises in 18 months, because of rapid population growth.
'Across 40 years, we have turned housing into a misery machine in Australia and this is a stunning national fail,' he said on Monday night.
'We had a terrible experiment over the past year with interest rates roaring up and yet house prices went up.'
One of Australia's top economists Chris Richardson has described housing in Australia as a 'misery machine' because immigration is too high
Mr Richardson, who has previously worked at Treasury and the International Monetary Fund, said the answer to unaffordable housing was to reduce immigration and allow more high-rise unit developments instead of raising interest rates in a bid to slow demand.
'I used to think interest rates would do the trick. They won't. We have to build,' he said.
'How do we build? We need the builders but what we need more than anything else - for 40 years, we had not in my backyard, council by council, by council decision, neighbourhood by neighbourhood, and after 40 years, we haven't built and when we do build, we attach all these conditions which make it incredibly expensive.
'I would love not to touch migration but we have screwed this up so massively as a nation that we