TRADE INDUSTRY NEWS: Land Values vs Housing Values

Housing Boom?

The cost of construction has remained steady for the last quarter century; the entire housing price boom has been in the land component.

Australian Residential Land and Dwelling Statistics

Effectively what these graphs mean is that while the current housing bubble (as defined by Macrobusiness) does provide some boost to home improvement, the circumstances of inflated land prices is sucking away much of the revenue that could be more usefully employed through construction activities.

Dollars that could be going to tradespeople, suppliers and retailers are instead going to people who own land, government taxes and real estate agents. It is not only not the best outcome for the home improvement industry, it also does not really help the Australian economy.