One of Australia’s leading economists says the solution to the housing crisis lies in telling NIMBYs (residents who say “Not In My Back Yard”) to “suck it up”.

Speaking to 7NEWS podcast The Issue, Chris Richardson says the fact that interest rates and house prices have both gone up in the last four years, is evidence that supply is the key problem.

Since May 2022 there have been 16 interest rate hikes by the Reserve Bank of Australia (RBA) and three cuts.

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The official cash rate has gone from 0.35 per cent to 4.35 per cent, and RBA Governor Michele Bullock this week didn’t rule out further interest rate hikes if the inflation problem persists.

In March 2022 the total value of dwellings in Australia was $10.9 trillion, and in March 2026 the figure now sits at $12.7 trillion.

The nation’s mean property price over the same time has gone from $930,000 to $1.1 million.

Chris Richardson speaks with The Issue. Credit: 7NEWS

The former Treasury insider, International Monetary Fund consultant and Deloitte economist says the Albanese Government needs to “bully” state governments and councils into approving more developments.

Arguing residents who oppose new local housing, infrastructure, or commercial projects in their neighborhoods are the cause for the nation’s property woes.

“Our housing policy for decades has been the word no,” Richardson told The Issue.

“The eventual political fight to improve affordability in Australia is going to be street by street, suburb by suburb, council by council, getting older and richer Australians to agree to building and change happening around them.

“The longer term solution does lie in ‘yes in my backyard’.

‘It’s time to suck it up.”

Government response

The Albanese Government says it is working with the states to increase housing supply.

Some of the policy initiatives include the $1.5 billion Housing Support Program, $3 billion New Home Bonus, $2 billion Social Housing Accelerator and $2 billion Local Infrastructure Fund.

“We work really closely with the states and through the states with local government to make sure that those approvals are happening,” Acting Prime Minister Richard Marles said on Saturday.

“We’ve been really clear that one of the critical challenges in terms of dealing with housing supply and ultimately dealing with housing prices is to make sure that more homes are being built.”

Bring in the tradies 

Housing sector lobby group Master Builders Australia is pushing for the Albanese Government to make tradies a priority in the skilled migration program.

The Master Builders have released new analysis that says an average migrant construction tradie who has a 30-year career builds an additional 21.7 detached homes and adds $1.88 million to the economy.

Master Builders Australia CEO Denita Wawn says workforce shortages remain enormous.

“Current estimates indicate we will need an additional 116,000 residential construction workers and 300,000 infrastructure workers over the coming years,” Wawn said to 7NEWS.

Workforce shortages remain enormous. Credit: Natalie Richards/Zstock - stock.adobe.com

“We need to pull all the levers, including encouraging more Australians to complete apprenticeships and pursue careers in the trades, while also improving the migration system so it brings in trade-qualified workers who are ready to contribute from day one.”

Iran War adds to problem

Construction costs have surged again in 2026 due to Donald Trump’s war in Iran.

The Australian Bureau of Statistics latest Producer Price Index published on Friday is grim reading for builders.

Cement products were up by 4.9 per cent, electrical equipment jumped by 12.1 per cent and steel costs declined by 1.2 per cent.

Master Builders Australia Chief Economist Shane Garrett said the figures demonstrate the impact that the Middle East conflict is having on the building and construction sector and reinforces the need for the Federal Government to address the underlying costs of building.

”The conflict in the Middle East has put additional costs pressures on our home building industry at a time when supply side pressures were already acute,” Garrett said.

“Building materials costs surged by 2.1 per cent during the March 2026 quarter alone.”

You can catch more of The Issue on Listnr or watch full episodes on our YouTube channel.