Real estate veteran Tom Panos has called out the construction industry as the root cause of Australia’s housing crisis.
In a series of Instagram videos, Panos stated, “It’s not a housing problem we’ve got, it’s a construction problem,” citing skyrocketing building costs and shortages of tradespeople as key factors driving the crisis.
Panos explained that it now costs 40-50% more to build a property than it did just a few years ago, with approval delays adding to the burden.
He also noted that developers are struggling to find workers, many of whom are opting for higher-paying independent work.
“I heard a brick layer today say he has an expectation he’s getting $900 a day … this is what they expect,” Panos said.
He criticised the rising costs in Australia, claiming that construction is three to five times more expensive than in countries like the UK, USA and Canada.
Panos used ChatGPT to compare global construction costs, highlighting that Australian costs per square metre ranged from $14,000 to $18,794, while in other countries, costs were significantly lower.
He argued that, due to high costs and risks, developers are hesitant to invest in new projects.
Panos emphasised that without developers, there will be no finished homes.
“Without a developer you don’t get a finished product, and without a finished product you don’t get people inside of them,” he concluded.
His comments sparked mixed reactions online, with some agreeing and others criticising his use of ChatGPT and questioning the accuracy of his comparisons.
However, Panos maintained that the lack of available workers and rising costs were the main barriers to solving the housing crisis.
Source: Real Estate.
