David 'Kochie' Koch, economic director at Compare the Market, has outlined five measures he believes could address Australia's housing crisis. Writing in the Daily Mail, Koch noted that the average mortgage size has risen six times faster than wages since the 1990s, with the average loan now nearly $637,000 compared to $67,000 three decades ago.
Koch argued that negative gearing, introduced in 1936, needs reform as it is being exploited. He suggested scaling back tax concessions or imposing an upper limit on the number of properties that can be negatively geared by one taxpayer. However, he warned that abolishing it entirely could reduce rental stock and drive up costs.
Embracing medium-density housing, such as townhouses and low-rise apartments, was highlighted as a critical solution. Koch called for reforming zoning regulations to allow higher-density developments in well-serviced urban areas, which could increase housing supply without expanding into green spaces.
Prefabricated homes, used after World War II, could also help plug supply gaps, according to Koch. He noted that modern temperature-controlled facilities allow for safe and swift construction, free from weather delays.
Finally, Koch cautioned against policies that simply give buyers more money, such as allowing superannuation withdrawals for deposits. He argued that such measures push prices higher, citing analysis that the Coalition's proposal would add 9% to median capital city prices. 'Throwing more money at the issue just isn’t the answer,' he wrote.
