Australians push back on proposal to tax ‘unused bedrooms’ to solve housing crisis — could it work in the US?

Core Viewpoint - Australia is facing a housing crisis similar to that of the U.S., with experts proposing a controversial solution: taxing unused bedrooms in homes [1][4]. Group 1: Research Findings - Research by real estate analytics firm Cotality indicates a mismatch between household sizes and the number of bedrooms, with the most common household size being two people and the most common dwelling having three bedrooms [2]. - Eliza Owen, head of Australian research at Cotality, suggests that while having spare bedrooms is acceptable, it can lead to inefficiencies in housing allocation [2]. Group 2: Proposed Solutions - Owen proposes that governments could implement a land tax on unused bedrooms or incentivize downsizing by abolishing stamp duty, aiming to make larger homes more expensive and smaller homes cheaper [3]. - The unused bedroom tax was discussed at Australia's Economic Reform Roundtable, with Treasurer Jim Chalmers not ruling out new taxes in future budgets [4]. Group 3: Public Reaction - The proposal has faced significant backlash, with public figures and citizens expressing strong opposition, including a viral TikTok video criticizing the idea [4][5]. - Senator Sarah Henderson labeled the proposal as "radical" and a "crazy idea," condemning the Labor Party for not dismissing it [5]. Group 4: Economic Perspectives - Economists, including AMP Chief Economist Shane Oliver, warn that the tax would be politically unpopular and could provoke a backlash, as many maintain spare bedrooms for visitors [5]. Group 5: Comparison with the U.S. - In the U.S., the housing affordability crisis has prompted Treasury Secretary Scott Bessent to suggest a potential national housing emergency, with considerations for standardizing building codes and reducing closing costs [6].