Why home prices obey economics and price-to-income ratios are a shoddy market metric A guest post by Arek Drozda

New at FET:

A guest post by Arek Drozda on how to avoid housing slop and understand pricing in an economically sensible way.

www.fresheconomicthinking.com/p/why-home-p...

Economist Cameron Murray on Housing A recording from Cameron Murray and William Miller's live video

I had a great chat with The Boyd Institute on housing markets.

Is there a crisis? What can we expect from housing markets?

Plus, what happens when we zoom out to a global and long-term perspective?

Enjoy.

www.fresheconomicthinking.com/p/economist-...

FET #63: Is Canada's housing market a glimpse into the future for Australia? Would you believe that the same stories told in Australian housing debates about a lack of supply were dominant in Toronto, Canada, right up until the bust?

FET #63: Is Canada's housing market a glimpse into the future for Australia?

I chat with @johnpasalis.bsky.social about the radical change in Canada's housing market over the past few years—from feverish boom to grinding down.

www.fresheconomicthinking.com/p/fet-63-is-...

Filtering Across Space and Time: A Scale Synthesis of Housing Supply Quantity change at a local spatial scale can be redistribution at wider spatial scale

New at FET:
Filtering Across Space and Time: A Scale Synthesis of Housing Supply

Quantity change at a local spatial scale can be redistribution at wider spatial scale

www.fresheconomicthinking.com/p/filtering-...

FET #62: Does economic complexity mean good jobs and high wages? A companion conversation to the FET article "Australia's economic complexity is fine, actually"

FET #62: Does economic complexity mean good jobs and high wages?

A companion conversation to the FET article "Australia's economic complexity is fine, actually"

www.fresheconomicthinking.com/p/fet-61-doe...

Supply and demand: The NESTED nature of trading dimensions (Part III) When economists talk about marginal costs do they know which margin? Let's think more clearly about ALL the margins.

Supply and demand: The NESTED nature of trading dimensions

When economists talk about marginal costs do they know which margin? Let's think more clearly about ALL the margins.

Very relevant to debates about the "marginal cost of supplying a new home"
www.fresheconomicthinking.com/p/supply-and...

Charts that lie go viral Hone your senses to sniff out bad charts

New at FET:
Charts that lie go viral

www.fresheconomicthinking.com/p/charts-tha...

I believe our public conversations about economics can be better That's why I write FET

Here are some articles I've released from behind the FET paywall to promote a better public conversation.

You will find deep dives on housing, planning, energy, cost-of-living, and superannuation.

All comments, shares, and likes are appreciated

www.fresheconomicthinking.com/p/i-believe-...

FET #60: The shakedown business How does the Iron Law of Oligarchy apply to day to day business?

New FET podcast: The shakedown business

How does the Iron Law of Oligarchy apply to day-to-day business?

www.fresheconomicthinking.com/p/fet-60-the...

FET #61: How investment returns shape housing markets with Mike Fellman Ignoring the housing assets fit into the broader asset market environment can lead astray analysis on what determines why new homes are built

New FET podcast:
How investment returns shape housing markets with Mike Fellman

Ignoring the housing assets fit into the broader asset market environment can lead astray analysis on what determines why new homes are built

www.fresheconomicthinking.com/p/fet-61-how...

FET #61: How investment returns shape housing markets with Mike Fellman Ignoring the housing assets fit into the broader asset market environment can lead astray analysis on what determines why new homes are built

New FET podcast:
How investment returns shape housing markets with Mike Fellman

Ignoring the housing assets fit into the broader asset market environment can lead astray analysis on what determines why new homes are built

www.fresheconomicthinking.com/p/fet-61-how...

FET #60: The shakedown business How does the Iron Law of Oligarchy apply to day to day business?

New FET podcast: The shakedown business

How does the Iron Law of Oligarchy apply to day-to-day business?

www.fresheconomicthinking.com/p/fet-60-the...

I believe our public conversations about economics can be better That's why I write FET

Here are some articles I've released from behind the FET paywall to promote a better public conversation.

You will find deep dives on housing, planning, energy, cost-of-living, and superannuation.

All comments, shares, and likes are appreciated

www.fresheconomicthinking.com/p/i-believe-...

Charts that lie go viral Hone your senses to sniff out bad charts

New at FET:
Charts that lie go viral

www.fresheconomicthinking.com/p/charts-tha...

How have they been ignoring this?

Supply and demand: The NESTED nature of trading dimensions (Part III) When economists talk about marginal costs do they know which margin? Let's think more clearly about ALL the margins.

Supply and demand: The NESTED nature of trading dimensions

When economists talk about marginal costs do they know which margin? Let's think more clearly about ALL the margins.

Very relevant to debates about the "marginal cost of supplying a new home"
www.fresheconomicthinking.com/p/supply-and...

FET #59: Unlearning Economics explains the rent control taboo Cahal Moran explains the strange ways economists go about their analysis of taboo issues like rent control

FET #59: Unlearning Economics explains the rent control taboo

Will rent control destroy your city? Or is this a slogan economists use to signal their tribal allegiance?

Watch here:
www.fresheconomicthinking.com/p/fet-59-unl...

@unlearnecon.bsky.social

Vested interests shape tax and housing policy in Australia. As high house prices continue to dominate the headlines, many remain sceptical of the “supply-side solutions” – or diversions – favoured by desperate politicians. Massive upzoning is underway nationwide – from NSW’s Transport Oriented Deve Tim Helm: Zoning, housing supply, & affordability seminar

WATCH: What is the economic answer to the question: why are houses built? Tim Helm has been working with @drcameronmurray to explore the current theories and see how effective they are at answering the question. www.youtube.com/watc...

Australia's economic complexity is fine, actually Our economy could be more diverse, no doubt. But the headlines don't capture the full story. Less popular economic complexity measures put Australia in the top ten nations.

Have you heard that Australia’s economic complexity has radically declined?

Sounds bad.

But what if this is mostly a measurement artefact?

Get informed with this new FET article

www.fresheconomicthinking.com/p/australias...

FET #56: How to beat the "cost of living crisis" and get financially independent A chat with Matt from Aussie Firebug on the tricks to reduce spending, boost saving and take responsibility for your financial life

FET #56: How to beat the "cost of living crisis" and get financially independent

A chat with Matt from Aussie Firebug on the tricks to reduce spending, boost saving and take responsibility for your financial life.

www.fresheconomicthinking.com/p/fet-56-how...

Forget land, labour and capital—BELIEFS are the supreme economic production factor Beliefs are the first step in any economic activity. How and why do they matter, and how do we sustain the most useful beliefs?

New FET article:
Forget land, labour and capital—BELIEFS are the supreme economic production factor

Beliefs are the first step in any economic activity. How and why do they matter, and how do we sustain the most useful beliefs?

www.fresheconomicthinking.com/p/forget-lan...

Rent Control Is Fine, Actually Regulating rent prices is often called "bad economics." But it isn't. The effects of rent control are complex.

Opposition to rent control massively overemphasises the negatives while all but ignoring the positives. The debate is stuck in the past.

www.currentaffairs.org/news/rent-co...

Just wait until you see the YIMBYs per new home chart!

Supply and demand: The MANY DIMENSIONS of housing (Part II) Supply and demand of what? That is a question we always need ask to make sure we are coherent in our economic analysis

New FET article:
Supply and demand: The MANY DIMENSIONS of housing (Part II)

Supply and demand of what? That is a question we always need to ask to make sure we are coherent in our economic analysis

www.fresheconomicthinking.com/p/supply-and...

I believe our public conversations about economics can be better That's why I write FET

New FET article:
I believe our public conversations about economics can be better

In the interest of broadening the public debate, I have released several articles from 2024 from behind the paywall.

Please enjoy, like, comment, share and subscribe.

www.fresheconomicthinking.com/p/i-believe-...

Talking economics in Sydney Fresh Economic Thinking goes on the road

New FET: Talking economics in Sydney

An update on a series of presentations in Sydney this week

www.fresheconomicthinking.com/p/talking-ec...

Would land value tax really solve that? Maybe property taxes are nearly as good as land value taxes, so swapping them for each other won't change as much as we think. Oh, and land prices will rise too!

New FET article:
Would land value tax really solve that?

I dig into the Georgist idea of switching from property to land value taxes and show that this switch will RAISE home and land values, not decrease them.

Which is fine. But not what most expect
www.fresheconomicthinking.com/p/was-henry-...

Death and COVID. It's personal. The COVID vaccine's toll

A personal story about myocarditis, death and the COVID vaccines www.fresheconomicthinking.com/p/death-and-...

Supply and Demand: They MUST apply to housing (Part I) Those who say supply and demand don't apply to housing are wrong. Yet most of those who swear that their version of supply and demand explains home prices are wrong too.

New FET article:
Supply and Demand: They MUST apply to housing
(Part I)

Those who say supply and demand don't apply to housing are wrong. Yet most of those who swear that their version of supply and demand explains home prices are wrong too!

www.fresheconomicthinking.com/p/supply-and...

FET #57: Is it crazy to tax unrealised gains in superannuation? Talking tax with John Humphreys Taxpayers Alliance Chief Economist John Humphreys joins the FET podcast to talk all things tax.

FET podcast #57: Is it crazy to tax unrealised gains in superannuation? Talking tax with John Humphreys

www.fresheconomicthinking.com/p/fet-57-you...