Peak body says housing supply and affordability can be addressed today
Australian housing and rental supply are “at a crisis point” – but there are strategies the government can enact right now to mitigate the problem, according to the Real Estate Institute of Australia (REIA).
REIA president Hayden Groves said that Budget 2023-2024 should emphasise measures that will help Australians right now. He said that REIA’s “Budget Priorities 2023-2024” include five action points that could be implemented immediately and would help those struggling with the current housing situation:
- Commission an occupancy audit of all government-owned housing
- Pin the rate of Commonwealth Rental Assistance to market rents
- Make interest rates tax-deductible for first-home buyers
- Commission a study to identify faster ways to build houses
- Work with local governments to identify latent capacity in housing stock
Groves said that falling house prices are not easing homeowners’ burden, as rising interest rates are pushing mortgage repayments upwards.
“In the September quarter of 2022 the total value of residential dwellings in Australia was $9,674.4 billion – a fall of $358.9 billion in the quarter. This is the largest quarterly fall in the value of residential dwellings in Australia since the series commenced in 2011,” Groves said. “Coinciding with this, in December 2022 the value of total new housing loan commitments continued to decline in December by 4.3% from record-high levels earlier in 2022. New owner-occupier loan commitments fell 4.2% to $15.6 billion, while new investor loan commitments fell 4.4% to $7.9 billion.”
Groves said REIA welcomed the government’s current initiatives in support of safer and more affordable housing, including the Housing Australia Future Fund, the National Plan for Housing and Homelessness and the National Affordability and Supply Council. However, he said more could be done.
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“Despite inflationary pressures, it is without doubt Budget 2023-2024 has a much better than expected economic outlook,” he said. “However, this does little to alleviate pressure on Australians seeking to buy or rent a home immediately and look to address structural issues inhibiting supply and affordability in Australia.
“Real estate practitioners across sales and property management are at the coalface of this crisis,” he said. “In my hometown of Fremantle, an affordable rental recently had 88 parties inspect it and 49 applications to rent it. That means 48 Fremantle locals have missed out, and for most of them a familiar outcome. This is happening every day across Australia and immediate relief is needed. REIA’s ’Budget Priorities - 2024’ focuses on recommendations to assist Australians, with the aim to deliver real solutions to Australia’s housing crisis now.”
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