What happened in Residential Construction this week?

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In this newsletter, you'll find:

Post 1

Why the Government Won’t Fix the Housing Market: The Cost of Ageing

and

Post 2:

Fast-Track Housing: What 1974 Got Right & Wrong

📬️ Post 1: Why the Government Won’t Fix the Housing Market (Even Though It Could)

It’s no secret that housing is getting more expensive, but here’s a question worth asking: does the government really want to fix it?

This week’s article dives into the uncomfortable truth—how rising property prices have quietly become a pillar propping up government finances, especially as our population ages and the tax base shrinks.

The piece unpacks how housing policy has shifted over time, turning homes into financial assets rather than places to live. And it raises an important point: if fixing affordability means deflating the property market, would any government actually pull that lever?

If you’ve ever felt like the system’s stacked against younger buyers or wondered why serious reform never comes, this article might explain why.

👉 Read the article and let us know what you think.

📬️ Post 2: Fast-Track Housing: What 1974 Got Right & Wrong

In 1974, Australia faced a housing crunch—rising costs, shortages, and a construction industry struggling to keep up. A government task force explored whether industrialised housing could be the solution. They envisioned a shift from traditional brick-by-brick building to modern methods aiming for faster, cost-effective, and quality-controlled construction.

The task force identified key factors for success: a steady market to justify investment in new methods, efficient use of resources, top-notch management, and consistent national standards to overcome local council differences. However, they also noted significant challenges, including consumer skepticism towards factory-made homes and the need for industry-wide cultural shifts.

Fast forward to today, and many of these insights remain relevant. The housing market still struggles with affordability issues, and the construction industry continues to seek innovative solutions. This retrospective offers valuable lessons on the potential and pitfalls of industrialised housing—a conversation that’s just as critical now as it was 50 years ago.

👉 Read the full article to explore how past initiatives can inform present-day housing strategies.

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💾 Software of the Week: Network Chuck Browser

Have you ever wished you could open the internet in a secure, disposable bubble—like a condom for your browser? That’s exactly what the Network Chuck Browser does.

This clever software lets you launch a secure, cloud-based browser session that’s completely isolated from your actual device. That means when you log in to your bank or email, there’s zero chance of malicious browser extensions, tracking scripts, or cookie theft (yes, that's a thing—it's called “cookie jacking”) grabbing your passwords. (wikipedia)

Why use it?

Most of us assume regular browsers are safe, but even reputable ones can leak sensitive data or allow bad actors to watch your activity. Network Chuck Browser gives you a way to browse safely—without exposing your operating system, personal files, or network.

What makes it different?

It spins up a virtual machine (VM) in the cloud just for your session.

When you’re done, it’s wiped clean—no history, no risk.
No downloads or technical skills needed.
No beefy computer required—everything runs remotely.

Who’s it for?

If you do online banking, log in to sensitive accounts, or just want to avoid digital nasties, this is for you. Especially helpful if you use shared or older computers that can’t run virtual machines themselves.

What do you need to use it?

Just a device with a modern web browser and internet connection. It works on Windows, Mac, Linux—you name it. No need to install anything. Just visit the site, log in, and launch your session.

Why we think you'll love it?

It’s secure, affordable, and refreshingly easy to use. No setup headaches. No jargon. Just safer browsing—wrapped in a tidy, cloud-based bow.

My 75 year old dad uses it without issue and he hates computers!

👉 Explore Network Chuck Browser

No, this isn't a dodgy site its just the logo of Chuck (he has quite the beard)

ICYMI - the most important construction news from this week

🚀 The latest residential construction news from new sources around Australia for the news week ending 06-06-2025 🔥

"The System Is Cracking — and Everyone’s Feeling It"

The housing system—from policy to affordability to construction—is under serious strain.

There’s a sense that we’re beyond Band-Aid fixes. We’re dealing with long-term consequences of inaction, flawed market assumptions, and systems stretched too thin. Whether it's falling short on national housing targets, legal questions about liability in failed builds, or NSW going solo on policy reform—everyone’s pointing fingers, but no one’s steering the ship with confidence.

Music of the week (to match our theme of the week)

“Once in a Lifetime” by Talking Heads (1980)

“And you may ask yourself, ‘Well… how did I get here?’”

Why this song? It captures the frustration of waking up to a world that no longer makes sense—like housing prices that defy logic or policies that never seem to help the people who need them. Shelter is a fundamental human need, so says Maslow.

Cant see the video embed below? Click here to watch on Youtube.

We've highlighted our favourite news articles for the week by marking with a 🌮 or five (yes, we've changed to Tacos instead of burritos).

31-05-2025

Markets still leaning towards July rate cut, despite inflation uptick – [LINK]

🌮 New housing approvals slip dangerously far behind National Housing Accord – [LINK]

Article excerpt: “A key driver of recent movements has been the increased value of non-residential projects rather than the number,” Rossi explained.

Australia’s housing and cost of living crisis is hurting the less well off – [LINK]

01-06-2025

Locked out: Generation faces housing crisis catastrophe – [LINK]

How bad is Australia’s housing shortage? (AUDIO) – [LINK]

Australian housing poised for new price boom – [LINK]

Deflated renter says cost of rent for tiny studio apartment 'is insane' – [LINK]

The economic week ahead – [LINK]

02-06-2025

🌮🌮 Australia’s hidden high-rise housing crash – [LINK]

Article excerpt: The reason for this is unsurprising. "Cost is arguably the major barrier to accelerating high-rise apartment construction. As illustrated below by Michael Matusik, constructing apartments is simply too expensive. As a result, buyers cannot purchase them at a reasonable price."

Also: "The construction quality of new apartments in Australia is also poor, and strata fees are exorbitant, further restricting affordability."

🌮🌮🌮 Might a receiver of a distressed development project owe a duty of care to subsequent owners of the lots when completed? – [LINK]

Our comment: This raises an interesting legal question—could liability pass to receivers who complete distressed developments?

03-06-2025

Labor introduces landmark laws to crack down on misuse of affordable housing – [LINK]

Our comment: It seems NSW is leading the way compared to other states when it comes to taking housing affordability seriously.

Land prices hold back housing affordability despite slowing construction costs – [LINK]

You’re Paying Off Taxes, Not a Home: How Property Taxes Inflate the Cost of New Housing – [LINK]

🌮🌮 Australia is forecast to fall 262,000 homes short of its housing target. We need bold action – [LINK]

A comment on an article (Daily Mail - boo hiss) I read on housing affordability stood out: "Ban housing from supply and demand economics. Housing, food, and health should be treated as basic needs, not subject to surge pricing. A small house from the 80s doesn’t gain value just because it’s old."

04-06-2025

🌮 Australia’s horror housing crisis singled out by global think tank – [LINK]

Our comment: I feel like I’m the only one not doing that dramatic hand gesture from the article’s images. I might start doing it just to look and feel more important—note to self!

The type of housing cost that just soared 75 per cent in five years – [LINK]

🌮🌮🌮 The new developer bond regime in Victoria: what you need to know before 1 July 2026 – [LINK]

Our comment: A promising first step toward better protections for buyers.

05-06-2025

Forestry companies shift focus to pine to meet demand for housing timber – [LINK]

Australia’s Housing Time Bomb: Why It’s Time to Sync Immigration with Housing Strategy – [LINK]

Alan Kohler on making housing a bad investment (Audio) – [LINK]

🌮 Ipswich adopts plan to boost housing affordability – [LINK]

Article excerpt: "Notably, the policy encourages building upwards rather than outwards, with relaxed rules for secondary dwellings such as granny flats. This could potentially create 22,000 additional homes and reduce urban sprawl."

06-06-2025

Brisbane downturn offsets regional housing rise – [LINK]

$2 million houses & $1 million units: Sydney’s new normal – [LINK]

The Last Word

This week felt a bit slow on the news front, prompting me to dive into learning more about economics—specifically, Modern Monetary Theory (MMT). Expect a blog post on this soon; writing and repetition helps me process new concepts.

MMT offers an interesting lens through which to view our government's past and current actions. It suggests that governments issuing their own currency can create money via their central banks to fund spending, with the primary constraint being inflation rather than debt levels.

One key idea is that government deficits equate to private sector surpluses. In other words, when the government spends more than it taxes, it injects financial assets into the private sector.

This perspective sheds light on why governments might rely on housing as a store of wealth. By influencing housing markets, they can indirectly manage wealth distribution and tax revenues, which can, in turn, affect budget deficits and inflation control.

It's important to note that MMT doesn't advocate for unchecked money printing. Excessive spending can lead to inflation, which must be managed through taxation or other means (RBA rate rises).

Interestingly, economist Milton Friedman acknowledged that government deficits aren't inherently bad. He made the point that the real issue lies in how the government spends money. Overspending on unproductive areas can be detrimental, whereas strategic spending can support economic stability.

Cant see the video embed below? Click here to view on Youtube

The Final Last Word: "Mo Money Mo Problems"

This week's housing news brings to mind a classic (except now I view it in a different light) "Mo Money Mo Problems" by The Notorious B.I.G.

As property values climb, so do the issues. Government policies aimed at stimulating the housing market—like the Help to Buy scheme and first-home buyer incentives—can inadvertently inflate demand, pushing prices even higher.

In the spirit of Biggie's lyrics, the pursuit of wealth—in this case, through property—brings its own set of challenges.

“I don't know what they want from me / It's like the more money we come across / The more problems we see.”

Cant see the embed? Click here to view on YouTube

A Thought to Chew On…

You might’ve noticed the government is throwing its weight behind Build-to-Rent housing lately. On the surface, it looks like a push to ease the housing crisis—and yes, that’s part of it. But zoom out a bit, and there might be more going on.

Build-to-Rent also sends a clear message to the world: “Australia is open for investment.” And not just any investment—safe, stable, bricks-and-mortar kind of investment. Think about it: we’ve got one of the world’s most tightly held mortgage markets, low default rates, and housing that just keeps going up in value. For overseas investors, that’s gold.

From a Modern Monetary Theory (MMT) perspective, governments don’t need taxes to spend—they need them to manage inflation. But the more debt a government takes on, the more it needs to keep interest rates (and bond yields) under control. That’s where housing comes in.

By funnelling investment into real estate—especially in structured formats like Build-to-Rent (REITS)—the government isn’t just trying to solve the housing shortage. It’s also making it easier to attract global capital, help balance its books, and keep inflation in check without jacking up taxes. It’s consolidating our “store of wealth” into a neat, investable product. Essentially, your mortgage, our housing market is the product being sold.

So while housing is being sold as a social good, it’s also very much an economic strategy. The more stable and attractive it looks to the world, the more Australia can borrow, spend, and smooth out its budget—all while saying, “Don’t worry, it’s backed by land.”

Mo money, mo… fiscal stability?

😶‍🌫️ That's all of today

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PS: 23-05-2025 To the person trying to inject malicious code into our feedback form—get a life. If you've got skills, put them to good use. Go write your own blog, share your insights, and help people in a way that only you can. Stop wasting your energy being destructive when you could be doing something that actually adds value. It’s easy to tear down—try building something instead.

What happened in Residential Construction this week? 06-06-2025