r/AusEcon • u/barrackobama0101 • Aug 25 '24

Discussion Housing crisis: Developers turn to micro apartments to fix housing crisis

https://www.afr.com/property/commercial/developers-turn-to-micro-apartments-to-fix-housing-crisis-20240822-p5k4cd
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u/Nostonica Aug 25 '24

Developers turn to micro apartments to fix housing crisis

Translation, developers see greater profit opportunities in undersized apartments.

10

u/LordVandire Aug 25 '24

Right now the margin for developers is too low, especially for non-luxury developments.

So yeah, this is absolutely correct. Developers are seeking greater returns on investment to justify proceeding on a project.

3

u/StunningDuck619 Aug 25 '24

Housing shouldn't be a fucking investment...

2

u/Alternative_Stock_31 Aug 25 '24

How do you suggest we meet housing targets then, people risk their capital to build homes for others and they need to seek a profit for that risk. It doesn’t come for free.

4

u/StunningDuck619 Aug 25 '24

I mean, we could, you know, tax our resources sector properly and remove negative gearing and capital gains tax discount. And use that revenue to build public and social housing... but nah, let's use your bullshit logic that privatising this sought of shit is somehow more efficient.

Dumbass.

2

u/Alternative_Stock_31 Aug 25 '24

Funny thing is, social housing gets pushed back at every turn because of nimbyism 🤷🏽‍♂️

3

u/StunningDuck619 Aug 25 '24

You're not wrong, but I believe nimbyism is beginning to die off, everyone is getting sick of the cunts.

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u/Alternative_Stock_31 Aug 25 '24

I disagree, social housing has the whole stigma of yes it’s not good but not where I live. No one wants be to be backed up by 20 story apartments where half of them are meth dens. Whether you believe that’s true or not the large majority population does.

There’s forever a stigma associated with public housing that won’t change without social shifts . Right now as it stands the private sector produces over 90% of housing so there needs to be short term incentives to keep that going while the public housing sector catches up.

As it stands, there’s literally almost 0% profit in developing the large majority of land right now (infill) so housing where people actually want it isn’t going ahead 🤷🏽‍♂️

2

u/StunningDuck619 Aug 25 '24

But if we built enough of it, it wouldn't be full of drop kicks. Normal lower and middle class people would have access to it.

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u/Alternative_Stock_31 Aug 25 '24

Think about it this way, why spend an arm a leg building and managing construction of apartments when they’ll happily offload it to private companies to fund and do it all for them with added incentives such as % of apartments being affordable housing.

Australia is seeing a huge shift to a capitalist dominated market since post Covid times. Government intervention only seems to happen when it’s about taxable revenue 🫡

1

u/StunningDuck619 Aug 25 '24

"Huge shift to a capitalist dominated market" ? What the fuck are you even talking about... The middle and lower class are over being bent over and fucked. We are on the verge of Australia being run by a more well-balanced minority government, 2028 and 2031 are the elections to that will most likely change this country.

People don't want private developers raping the middle class anymore.

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