ABC News Daily Alan Kohler on why we need 117,000 more tradies
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Nov 3, 2025 Alan Kohler, ABC finance presenter and economic commentator, discusses crucial insights on Australia's tradie shortage and housing affordability. He reveals how three recent rate cuts have spiked house prices by about 6%. Kohler emphasizes the urgent need for 117,000 additional tradies to meet housing demands, while exploring the mismatch between current immigration policies and the trades sector. He also highlights the challenges of trade qualifications recognition and the role of temporary visa holders in driving rental demand.
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Rate Cuts Drove Recent Price Rises
- Three interest-rate cuts this year increased what buyers can afford and pushed house prices up about 6%.
- Alan Kohler links recent price rises directly to lower mortgage rates enabling higher auction offers.
Two Forces Shaping House Prices
- House prices move from two forces: underlying demand/supply and what buyers can afford to pay.
- Kohler emphasises affordability depends on mortgage rates and deposit size, which interact with supply constraints.
Expect 5% Deposit Rules To Lift Demand
- Recognise that policies changing deposit requirements alter who can bid for homes and therefore influence prices.
- Policymakers should expect 5% deposit schemes to widen buyer pools and add upward pressure on prices.