A Looming Shortfall and Urgent Need for Action
A new report paints a grim picture of Australia's housing system, highlighting its inequity, unaffordability, and undersupply. The National Housing Supply and Affordability Council warns that the nation is on track to miss its target of 1.2 million new homes by 2029, leaving many Australians struggling to find affordable and secure housing.
The report identifies several factors contributing to the crisis, including lagging construction times, rising population and demand, and unaffordable mortgages and rents. The council emphasizes the need for swift action from the government to fulfill its housing promises and address the systemic issues plaguing the market.
One key concern is the lack of progress on state planning reforms and federal funding for infrastructure and social housing. Additionally, the construction sector faces challenges such as limited capacity, low productivity, and a lack of innovation. These factors further exacerbate the housing shortage and hinder the ability to meet the growing demand.
The report also sheds light on the inequities within the system, highlighting the decline in homeownership affordability and the disproportionate impact on vulnerable groups. Indigenous Australians, for instance, are half as likely to own a home and six times more likely to live in social housing.
Taxation reform: Reviewing the current system that favors homeowners over renters.
Addressing the significant shortfall in social housing stock compared to other OECD countries.
Doubling the fund to support the construction of more affordable and social housing.
The government has acknowledged the urgency of the situation and committed over $25 billion to new housing initiatives in the upcoming budget. However, the council emphasizes the need for continued action and collaboration between federal, state, and territory governments to ensure the ambitious target of 1.2 million new homes is met.
The report serves as a stark reminder of the challenges facing Australia's housing system and the urgent need for comprehensive solutions to ensure everyone has access to safe, affordable, and secure housing.