Western Australian State Government and Housing Affordability

The Western Australian State Government is responsible for the state having the most unaffordable housing in Australia.

Problem 1: "Network City: community planning strategy for Perth and Peel"

This is a plan by the State government. Even a quick skim over reveals the flaws. For example, according to their website, the "Key new directions" include:

  • Managing urban growth through the staging of development
  • Providing the majority of new dwellings in existing urban areas

Both of these contribute to decreased land supply

Land supply

Land supply is a term that indicates how many blocks of land are available. Allowing subdivision (such as by rezoning from rural to residential) increases the land supply, as does limiting the amount of land that someone can buy. You can read more about it in Land Supply and Demand. , and insufficient land supply

Land supply

Land supply is a term that indicates how many blocks of land are available. Allowing subdivision (such as by rezoning from rural to residential) increases the land supply, as does limiting the amount of land that someone can buy. You can read more about it in Land Supply and Demand.
is the cause of the current housing crisis.

Problem 2: Overacquisition

The Western Australian State Government has sold large chunks of land to developers who have now hiked the prices. There are two simple solutions, and both should be implemented:

  1. Implement a Land Value Tax

    Land Value Tax

    Land Value Tax is a tax on the value of the land, but not on the value of the things on the land (such as buildings); buildings are not taxed, land is. You can read more about it in Land Taxes.
    (see Land Taxes), which will make the developers keen to get rid of the property.
  2. Release more land. If enough land is released

    Land release

    Land release is a euphemism for the process whereby the government rezones land from a lower density zoning (such as rural) to a higher-density zoning (such as suburban). If the government hadn't restricted the land, it wouldn't need "releasing". You can read more about this in Land Supply and Demand.
    , developers will not be able to buy all of it, will lose their monopoly, and will have to sell at the market rate instead of artificially inflated prices.

The Solution

As well as voting for people who will fix the problem by releasing more land, you should be able to lobby your State MP, and the State MPs responsible for the various departments:

Your personal State MP can be found by using Members of Parliament page.