The outspoken Greens MP knocked back Reserve Bank Governor Philip Lowe’s solution to fixing the nation’s housing crisis, demanding more public and affordable homes be built.
Phillip Lowe has revealed how “out of touch” he is with most Australians after the RBA Governor suggested people should “get a flatmate” to cope with soaring house prices, says Sky News host Jenna Clarke.
“It’s a bit rich when we hear from a bloke who probably lives as an empty nester in the affluent suburb of Randwick in Sydney, that got a bit of a mate’s rate when it came to his home loan back in the day,” Ms Clarke told Sky News host Sharri Markson.
Appearing at Senate Estimates during the week, Mr Lowe was pressed on a number of areas including the impact population growth will have on housing supply.
Governor Lowe said there was not enough housing stock to accommodate the strong surge in Australian residents.
Greens MP Max Chandler-Mather has pushed back against Reserve Bank Governor’ Philip Lowe’s solution to fixing housing in Australia. Picture: NCA NewsWire / Martin Ollman
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He conceded that there is no immediate fix for the situation, but suggested people battling the rental crisis should find a roommate, or stay in the family home to help reduce rental prices.
“We need more people on average to live in each dwelling, and higher prices do that,” Dr Lowe said.
“Higher prices do lead people to economise on housing, don’t they? Kids don’t move out of home because the rent’s too expensive, or you decide to get a flatmate or a housemate because that’s the price mechanism at work.”
Mr Chandler-Mather, the party’s housing spokesperson, said the Governor was “sort of wrong” with the comments he made – pointing to the current family dynamic in Australia.
Appearing at Senate Estimates during the week, Mr Lowe was pressed on a number of areas including the impact population growth will have on housing supply. Picture: NCA NewsWire / Martin Ollman
The Griffith MP cited data which shows the average number of people per household is below 2.5.
“Underlying that is the reduction in the number of children per household,” he told Insiders on Sunday.
“The number of adults hasn’t dropped that much. But what we are seeing is a shift in the nuclear family.
“Philip Lowe is sort of wrong to suggest that somehow we need more share houses. Everyone who can is living in a share house already because rents are sky-high.”
Mr Chandler-Mather said his solution to the problem is to invest in more public and affordable housing, while introducing a rent freeze nation-wide.
Laborâs budget found $12 bil for property investors and locks in $30 bil a year for the Stage 3 tax cuts. It is beyond comprehension that Labor would refuse to invest $3.5 bil on public housing and a rent freeze in the middle of one of the worst housing crises Australia has seen.
— Max Chandler-Mather (@MChandlerMather) June 4, 2023
“Really, the way to solve this issue is a large-scale investment in public and affordable housing, the way the country used to in the 20th century, and a freeze on rent increases,” he added.
“Because the other problem we are having right now is that you’re having people evicted out of long term places which means they are going to join the queues of finding a new rental.
“We just need some stability to this system.”
Meanwhile, the Reserve Bank will meet on Tuesday to reveal its next monetary policy decision, which will likely take the latest inflation data into account.
Consumer Price Index (CPI) data released on Wednesday revealed annual inflation increased from 6.3 to 6.8 per cent in the year to April.
Being told to move in with others is ‘really harsh and feels tone deaf’: Independent MP
Driving that figure were increases in the prices of housing, fuel, food, and transport. Last month it lifted the cash rate by 25 basis points to 3.85 per cent, after pausing in April.
At the time Mr Lowe cited the high inflation rate was the main driver when announcing the monetary policy decision.
“Inflation in Australia has passed its peak, but at seven per cent is still too high and it will be some time yet before it is back in the target range,” he said.
“Given the importance of returning inflation to target within a reasonable timeframe, the board judged that a further increase in interest rates was warranted today.”