Tax Changes in Perth Cited as Driver of Housing Supply Shortage
What happened
Tax changes in Perth are reportedly reducing housing supply and investor incentives. This has led to a tightening rental market, with rent increases reaching 141 per cent over seven years in some cases. Due to the tight supply, extended families and friends are increasingly grouping together to secure rental properties.
From abc.net.au
Why it matters
The reduction in housing supply and increased rental costs in Perth are forcing changes in household structures, as families and friends must share accommodation to afford properties.
From abc.net.au
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- National Australia BankSpeculative
National Australia Bank might see changes in market prices or credit risk due to the reduction in housing supply caused by tax changes.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Tax changes may drive up rental inflation, impacting RBA metricsRental inflation may rise due to supply shortages, influencing RBA policy decisionsLikely
- Rising Perth rents may threaten Dennis's business viabilityDennis's business viability may be threatened by rising rental costs in PerthPossible
- Housing shortage may increase development pressure on City of StirlingHousing supply shortage may increase development pressure on City of StirlingPossible
- Housing supply crisis may force state planning framework changesThe state may need to adjust planning frameworks to address housing supply shortagesPossible