Now is the time to tackle the housing shortage, peak body says
The Real Estate Institute of Australia has welcomed the Reserve Bank’s recent decision to hold the cash rate at 3.6%.
REIA called the RBA’s decision “evidence-based” and said that Australians were struggling with a difficult economic climate and a severe housing shortage.
RBA governor Philip Lowe said Tuesday that the decision to hold interest rates steady would give the central bank time to assess the state of the economy.
REIA president Hayden Groves said that recent data from the Australian Bureau of Statistics showed that the Consumer Price Index (CPI) had started to slow, posting 6.8% growth in the 12 months to February.
“This is down on the annual figure for the year to January of 7.4% and 8.4% for the 12 months to December 2022, and points to a clear downward trajectory in the rate of inflation,” Groves said. “However, the most significant contributor to the annual increase in the February monthly CPI was housing and the rental sector. Rents continued to rise with an annual increase of 4.8% in February, the same as January’s, compared to the 12 months to December of 4.1%.
Groves said that with the cash rate finally on hold after 10 consecutive hikes, now is the time to concentrate on increasing housing options in Australia.
“We are fighting inflation at the same time we are fighting a severe housing – particularly rental – shortage, with all Australians affected by the slowdown of the economy,” he said.
Groves said that renters, prospective home buyers and homeowners alike are suffering because of the housing shortage.
“Ahead of the federal budget 2023, we need to move forward with programs of investment that physically deliver increased housing, such as taxation reforms and a government housing audit, that practically helps Australian renters and home buyers combat the current crisis,” he said.
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