Industry body raises alarm over persistent housing issue
While welcoming the federal government’s $9.2 billion investment in social and affordable housing, the Real Estate Institute of Australia (REIA) remains concerned about the broader challenges of housing affordability.
“The funding is a step forward in addressing the critical supply issues for social and vulnerable housing,” said REIA president Leanne Pilkington (pictured). “However, we must also ensure housing is available for young professionals, downsizers, and others, and that the construction industry can meet demand across both social and market-rate housing.”
According to REIA’s latest Housing Affordability Report, rental affordability worsened in the June quarter, with the proportion of income required to meet median rents rising to 24.6%. The report highlighted a mixed outlook across the states, with rental affordability improving in New South Wales, Tasmania, and the Australian Capital Territory (ACT), but deteriorating elsewhere.
Pilkington noted that while rental affordability is under pressure, the wider issue of overall housing affordability — including both renting and buying — remained a significant concern.
“Housing affordability is at its lowest point since we began tracking in 1996,” she said, adding that mortgage repayments now represent 48.1% of the median family income nationwide. Minor improvements were seen in Victoria, the Northern Territory, and the ACT, but South Australia and Tasmania experienced the largest declines in affordability.
“REIA hopes that while this new housing initiative is a positive step, attention remains on ensuring all Australians can access affordable housing options,” Pilkington added.
The $9.2 billion investment, through the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF), includes 185 projects aimed at delivering over 13,700 homes, with approximately 700 homes expected to be completed by the end of the current financial year. The long-term goal is to build 40,000 homes over five years.
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