Date of publication: 2017-08-30 11:01
"Although there are elements of rental stress — and governments can be involved in helping to do things around that. let's not forget that rents today make a lot more sense than housing prices."
Mr Richardson said the property market was rightly "front and centre" for the Federal Government and the Opposition, which are both proposing policies to improve access to the market.
"Negative gearing is a symptom not a cause of the problems — the reason why it has taken off is because our capital gains tax discount is absolutely too big," he said.
"We should push our politicians to have the courage and listen to the professional advice that I'm pretty sure they would be getting. But don't assume this solves the problem."
Property prices in Sydney and Melbourne have increased by around 65 per cent in 67 months , according to the Australian Bureau of Statistics, and the Coalition has promised solutions in the May budget.
His comments come as a proposal to allow people to access their superannuation to purchase a home causes growing division in the Coalition , with some praising the idea and others describing it as "madness".
Deloitte Access Economics' Chris Richardson used his speech at the National Press Club on Wednesday to offer some advice to those seemingly locked-out of the property market.
Meanwhile, Deputy Prime Minister Barnaby Joyce said there was "not a housing affordability crisis in Australia" and people unable to buy in capital cities should consider moving to regional areas.
Australians would be better off renting than trying to purchase a property given record prices in capital cities, according to one of Australia's most respected economists.