Leading economics commentator Cameron K Murray’s The Great Housing Hijack offers a sage analysis of the economic imperatives that define the way we live.
In frank, systematic terms, it cuts through economic hot air and media hyperbole – in particular the dramatic clickbait about “crises” – in favour of a depressingly simple truth about the property market: that it’s generally behaving as it has always done, has been designed to and likely always will.
Still, the book is ultimately prepared to offer us optimism with an alternative proposal.
There’s some irony about a book deriving interest from disavowing the overtly dramatic perspective(s). It’s also a little at odds with what you may expect from the title, along with the tagline ‘The Hoaxes and Myths Keeping Prices High’, which rather implies some juicy overarching conspiracy (by a cabal of Julius Marlow-clad estate agents, perhaps).
Nevertheless, as Murray diligently explains – however much vested interests may complain – today’s market is business as usual. Inherent economic forces ensure there have to be winners and losers, the latter quite likely to be those who can least afford it.Â
What has been “hijacked” it turns out, is not the market per se – but the way we understand the market, the intractability of its determining factors.
To make a genuine difference, something far more seismic, involving rare political leadership and gumption, is required.
Meanwhile, any attempts at “course corrections” at present, like tax and first home buyer policies, achieve little. They’re largely a sop by politicians to make their voters feel as if somebody’s helping them a bit.
Furthermore, rather than being subject to some conspiratorial force of late, this is the way it has always been. In fact, as Murray points out, it’s basically been the local status quo since at least 1836, when Charles Darwin popped into Sydney on the HMS Beagle and wrote in his diary about how everyone was complaining about the rent.
Pushing this perspective, Murray contextualises himself as a bit of an outlier among experts – but his argument, which is timely and informed by the very latest info and trends, certainly makes sense to the layman. Only a few knottier passages caused us (one of said laypersons) some rereading for clarification – and there’s a helpful glossary of terms at the back (for those carefree souls who were hitherto, say, not even entirely sure what “capital gains” means).
Generally speaking, it makes for a valuable, engaging read on issues that affect everyone. If you are even mildly curious about the property market, especially if you’re wondering why you’re being screwed by it, then this book will have intrinsic interest.
Simplicity is welcome – although admittedly Murray’s prose style can be a little clunkily robotic, especially when it strains at being chattily informal (‘I’d love not to write this book,’ he says, at one point – would you really, Cameron?). Still, you’re not reading the book for its rhetorical flourishes.
Nor does it pretend to get particularly warm or fuzzy on behalf of the many people struggling within the system, while explaining their problems aren’t historically unique. But that’s economics for you, where the hard reality is ‘affordability makes little sense’ – and he quotes no less than Joe Hockey saying, ‘the starting point for a first home buyer is to get a good job that pays good money’ as a salient, albeit uncomfortable, truth for good measure.
In fact, by centring himself quite a lot, the book can read as if the housing debate bothers Murray more than anyone else – and his personal frustration really bubbles through in putdowns of media and policymakers. This brings a bit of spice to his examination of the way real economics is warped through the prism of media hyperbole and political spin.
He most overtly characterises himself as a voice in the wilderness, unheard and unheeded, when he goes into detail about a 2021 Four Corners feature on the housing market entitled ‘Going, going, gone’, for which, Murray explains, he provided an hour-length interview that he hoped (and tweeted as much at the time) would provide broader context. That context included the fascinating (and seemingly counterintuitive) detail that monetary policy had kept prices at 2017 levels and mortgages, at the time, relatively cheap.Â
Instead, to his dismay, the program turned out to emphasise the flashier perspectives of estate agents in convertible cars.
He is now using this book to reclaim the position of voice of reason, going beat by beat through the program’s problems, as well as including a text disagreement he had with its journalist Stephen Long on the back of it.
It’s enjoyably combative and contrarian, although it’s not until the end of The Great Housing Hijack (spoilers), where he eventually proposes his “solution”. This is something he calls HouseMate (cunningly dubbed with a catchy portmanteau à la Medicare) – basically a subsidised public homeownership scheme run in parallel to the private property market. Again, it makes sense (at least to the non-expert). In fact, the potency of this concept makes you wonder why he didn’t frame the book around it, as opposed to the titular “hijack”, which may have given the book a more compelling and positive spin.
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However, Murray’s point is that “spin” is one of the problems that beset the debate. And his matter-of-fact analysis, an excellent explainer of the housing market, will be interesting reading for many, regardless of quibbles about how it’s presented.
The Great Housing Hijack, Cameron K Murray
Publisher: Allen & Unwin
ISBN: 9781761470851
Format: Paperback
Pages: 336pp
Release Date: 27 Feb 2024
RRP: $34.99
