Greg Jericho
Chief Economist

The Labor Party’s plan to build 100,000 new homes in 10 years has had some wondering if we have the capacity – after all where are the builders to do all that work?

Well one place to look is new coal and gas mines. The government keeps approving new (sorry extensions) gas and coal mines and that takes construction workers away from the building homes and commercial buildings.

In the last financial year as much was spent constructing new mines than was on new apartments and flats.

This is a poor use of our resources. Not only is it taking workers away from the residential construction sector and thus causing supply constraints and increasing the cost of building new homes, but coal and gas contribute to climate change.

So we’re heating up the planet and the housing market. Dumb, both ways.