Social housing is an area of the market that needs attention, says REIA president
The Real Estate Institute of Australia has lauded the leader of the Opposition’s budget-in-reply commitment for a $10 billion fund for social and affordable housing.
REIA President Adrian Kelly said social and affordable housing was an area of the market that needed to be fixed, as highlighted during the COVID-19 pandemic when the private rental sector supported tenants through eviction moratoriums.
“Done well, social and accordable housing also provides an important stepping-stone to participating in private markets and homeownership, especially if housing is strategically built close to work, education and public transport,” Kelly said. “If a Future Fund-style model sustainably finances the gap for community housing providers without top-up from the existing public purse, then that is a sensible thing and puts the sector in good stead, as well as builds on the existing success of the National Housing Finance Investment Corporation. In particular, housing support for families fleeing domestic violence situations is both most welcomed and much needed.”
Read next: Budget should prioritise housing issues, industry group says
Kelly said that a comprehensive plan was needed to address supply and affordability issues in the private rental market. The total package of housing to be built through the Future Fund would amount to the equivalent of 1% of extra rental stock, REIA said.
“The private rental market is around 27% of the housing spectrum, the absolute majority of which is currently supplied and paid for by mum-and-dad investors,” Kelly said. “We need a comprehensive plan that addresses all players in property. Negative gearing will remain an absolutely critical part of this, and if the Opposition is serious about dealing with the affordability issues, they need to give mum-and-dad investors the confidence to continue to invest with certainty.”
Ryan Smith is currently an executive editor at Key Media, where he started as a journalist in 2013. He has since he worked his way up to managing editor and is now an executive editor. He edits content for several B2B publications across the U.S., Canada, Australia, and New Zealand. He also writes feature content for trade publications for the insurance and mortgage industries.LinkedIn | Email
