Jim Penman says Australian house prices did not explode mainly because of immigration. They exploded because government restrictions, zoning rules, and planning controls made it too hard to build enough homes where people actually want to live.
In this discussion, Jim Penman, founder of Jim’s Group, explains why housing has become unaffordable, why young Australians are being hit hardest, and why he believes zoning reform is one of the clearest ways to lower prices and rents.
Why Are Australian House Prices So Expensive?
Jim Penman says Australian house prices are so high because government rules have restricted housing supply.
He compares today’s market with his own experience in the 1970s. Back then, he was working as a part-time lawn mowing contractor while studying, and he bought his first house for $30,000. Most of that money came from his mowing work, with some help from his grandparents.
“My first house cost me $30,000.”
Jim’s point is that this pathway is almost impossible for young Australians today. He says houses used to cost three or four times the median income. Today, he says they cost about eight times the median income.
That change has pushed home ownership further away from ordinary workers and made rent more expensive for people who cannot buy.
Is Immigration Really To Blame For Australia’s Housing Crisis?
Jim Penman says immigration is not the main cause of Australia’s housing crisis.
His argument is that immigration only becomes a serious housing problem when governments bring in more people while also blocking enough homes from being built.
He uses Houston and San Francisco as his comparison. Houston has more immigration pressure because it is near the Mexican border and attracts people from California. Yet Jim says Houston’s median house price is around half a million dollars in Australian terms, while San Francisco’s is well over $2 million.
“Same country, same immigration policy, different housing policies, different zoning policies.”
For Jim, that comparison proves the real issue is not immigration by itself. The bigger issue is whether housing supply can respond to demand.
If Australia grows its population but keeps restricting housing, prices will keep rising.
How Do Zoning Laws Drive Up House Prices?
Zoning laws drive up house prices by limiting where homes can be built, what type of homes can be built, and how much density can be added in high-demand areas.
Jim believes zoning stops land from being used properly. Instead of allowing more homes near jobs, shops, schools, public transport, and services, governments protect low-density areas and limit supply.
That means more people are forced to compete for fewer homes.
Jim does not argue that every suburb should become a wall of high-rise apartments. He talks about more two-storey and three-storey buildings, terrace houses, and denser neighbourhoods like parts of New York and London.
His view is simple: Australia needs more liveable density, not more restrictions.
Could Australian Homes Be Much Cheaper?
Jim Penman believes Australian housing could be far cheaper if supply rules were changed.
He points to Houston as an example, where he says the median house price is about half a million dollars in Australian terms. He argues there is no reason Australia could not have more homes available at lower prices if zoning and planning restrictions were reduced.
He says people should be able to buy houses for around $300,000, $250,000, or $350,000 in a healthier market.
That does not mean every home would be cheap. But Jim’s point is that ordinary workers should have a realistic entry point into housing.
Right now, many do not.
Why Are Australian Renters Under So Much Pressure?
Renters are under pressure because too many people are competing for too few rental homes.
Jim gives a personal example involving his daughter and her partner. They tried to rent an apartment in Ringwood, and around 40 people were also applying for the same ordinary apartment.
Jim says he even offered to pay the first year’s rent in advance, in cash, but they still did not get it.
That shows how tight the rental market has become. When supply is low, renters have fewer choices, less bargaining power, and more pressure on their household budgets.
Jim also links high rent to homelessness. He says many people living on the streets are there because they cannot afford rent.
Why Are Young Australians Being Priced Out Of The Housing Market?
Young Australians are being priced out because they face house prices and debts that older generations did not face.
Jim says many older Australians already own their homes. Younger people are trying to enter a market where prices have risen far faster than income.
Some policies let people buy with a 5% deposit, but Jim says that still leaves them carrying massive debt for years or decades.
“You shouldn’t have to have a father who’s a multi-millionaire to afford to buy a house.”
His concern is that housing costs are cramping young people’s lives. It affects where they live, whether they can start families, and how much debt they carry into the future.
How Does Expensive Housing Make Australia More Unequal?
Expensive housing makes Australia more unequal because it rewards people who already own property and punishes people trying to get started.
Jim uses his own home as an example. He says he bought the house he lives in around 22 years ago for $700,000. It is now worth more than $2 million.
His point is that he did not create that extra value. He simply owned the property while the market rose.
That is why Jim sees rising house prices as unfair. Existing owners grow wealthier on paper, while renters and first-home buyers fall further behind.
For Jim, housing affordability is not just an economic issue. It is a fairness issue.
Why Does Jim Penman Support Denser, More Walkable Cities?
Jim Penman supports denser, more walkable cities because they can make housing cheaper, reduce commuting, and create more liveable communities.
He says people should be able to live closer to where they work. Long commutes affect happiness, time, family life, and well-being.
Jim also argues that denser cities are better for the environment. Spread-out cities force people into cars and long trips. More compact cities make walking, public transport, and shorter travel more practical.
“Liveable, walkable cities, better for people, better for the environment.”
His argument is not about crowding people into poor-quality housing. It is about allowing more practical homes in places where people already want to live.
What Would Jim Penman Change First About Housing Policy?
Jim Penman would change zoning first.
When asked what one policy or regulation he would change, his answer was direct: zoning.
He argues that people make sensible decisions about land use. Factories will naturally go where factories make sense. Shopping centres will go where customers and traffic are. Homes should be built where people want to live.
Jim says the market can work better when the government stops blocking useful development.
“We have to get rid of zoning. It is noxious. It is poisonous.”
For him, zoning reform is both a freedom issue and a social justice issue.
Should Large Private Blocks Be Protected From Development?
Jim Penman says protecting large private blocks should not matter more than giving more families access to affordable housing.
He gives his own property as an example. He has a house next to the office on five acres and says he enjoys seeing kangaroos in the garden. But he says his desire for a five-acre backyard should not outweigh the right of 40 families to have affordable housing near transport and shops.
That is the value judgement he wants people to consider.
He is not saying owners should be forced to develop their land. He is saying the government should not stop them from using land more productively if they choose to.
How Much Does Government Regulation Cost Ordinary Australians?
Jim Penman says government regulation costs ordinary Australians by making housing, business, and everyday life more expensive.
He argues that bureaucracy often stops useful things from happening. In housing, that means blocking supply. In business, it means more compliance, more legalism, and more cost.
Jim also says the government could be run far more efficiently. He estimates that if the government were run better and unnecessary rules were removed, each Australian household could be around $400 per week better off.
That works out to about $20,000 per year.
He supports essential government services such as police, clean water, food safety, and hospitals. His criticism is aimed at unnecessary regulation and inefficient bureaucracy.
Key Housing Cost Points From Jim Penman’s Argument
| Housing Issue | Jim Penman’s Point |
| First home in the 1970s | Jim bought his first house for $30,000 while working as a part-time mowing contractor |
| House price to income ratio | Homes used to cost three or four times the median income, but now cost about eight times |
| Houston comparison | Houston’s median house price is about half a million dollars in Australian terms |
| San Francisco comparison | San Francisco’s median house price is well over $2 million in Australian terms |
| Rental pressure | Around 40 people applied for one ordinary Ringwood apartment |
| Deposit pressure | A 5% deposit still leaves young buyers with a massive mortgage |
| Property wealth gap | Jim’s own home rose from $700,000 to more than $2 million |
| Bureaucracy cost estimate | Jim estimates inefficient government costs households about $400 per week |
What Is Jim Penman’s Solution To Australia’s Housing Crisis?
Jim Penman’s solution is to let more homes be built where people actually want to live.
He believes Australia cannot fix housing affordability while restricting supply. Grants, deposit schemes, and political promises will not solve the issue if zoning rules continue to block enough homes from being built.
His solution includes:
- Relaxing zoning restrictions
- Allowing more medium-density housing
- Building more homes near jobs, shops, transport, and services
- Reducing unnecessary bureaucracy
- Letting property owners make better use of land
- Creating more walkable and liveable cities
Jim’s message is simple: if Australia wants cheaper homes and fairer rents, it needs to stop blocking housing.
Frequently Asked Questions
Jim Penman thinks Australian house prices exploded because government restrictions limited housing supply. He argues that zoning and planning controls stop enough homes from being built where people want to live.
No. Jim Penman does not blame immigration as the main cause of high house prices. He says immigration becomes a housing issue only when governments also restrict the building of enough homes.
Jim Penman uses Houston and San Francisco as his main comparison. He says both are in the same country with the same national immigration policy, but Houston has much cheaper housing because its housing and zoning policies are different.
Jim Penman supports zoning reform because he believes it would increase housing supply, lower rents, reduce house prices, and give young Australians a fairer chance to buy a home.
Jim Penman wants more medium-density housing, including terrace houses, two-storey buildings, three-storey buildings, and compact neighbourhoods near jobs, shops, transport, and services.
Jim Penman thinks young Australians are being hurt most because they face house prices far higher compared with their income than previous generations. He says they are forced into huge mortgages or locked out of home ownership entirely.
Jim Penman is the founder of Jim’s Group, one of Australia’s best-known franchise networks. He started as a lawn mowing contractor and built Jim’s Group into a large service franchise network across many divisions.
Jim Penman shares his views on housing, government, regulation, business, and Australia’s future through The Jimcast and Jim’s Group channels.
In this discussion, his message is clear: Australia’s housing problem will not be fixed by blaming immigration alone. It will be fixed by allowing more homes to be built where people actually want and need to live.
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