The great lock out: the impact of housing and land regulations in Western Australia
Government interventions in the housing market restrict the supply of land for housing and raise its costs. The public policy interventions in land supply and development markets are numerous. Centred on planning and environmental policies, they include land release, land preparation, development and building approvals.
These restrictions are the key measures that impair the ability of first home buyers from achieving the ‘great Australian dream' of home ownership by increasing housing costs. They are accompanied by other cost-inflating measures including taxes and building regulations.
This paper examines impediments to housing affordability in Western Australia. It establishes that government regulations have a pervasive impact in restricting the supply and raising the cost of new housing which, in turn, places upwards pressure on all house prices. Relaxing current regulatory requirements would considerably reduce house prices in Western Australia.