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The National Housing Supply and Affordability Council released their “State of the Housing System” report in Sydney today.
“The Report includes forecasts of housing demand that fall significantly short of what is required. The underestimating of demand is one of the reasons local councils have continually under-supplied land for development over recent decades.
“Success however, isn’t in meeting forecasts set out in a report, but in ensuring that rental price growth, and house price growth are constrained. This will require all tiers of government to work toward increasing supply of housing to ensure that rental properties are more readily available in the future.
“Success is a rental vacancy rate above 3 per cent in every local council across the economy.
“The acute shortage of housing stock has led to rental vacancy rates across the country approaching zero. This leads to very inequitable outcomes.
“Policy initiatives outlined in the report, however, are warranted.
“The ten areas that can improve housing outcomes listed in the report include positive initiatives to increase public housing stock, improving land use and planning systems, boosting building capacity and improving the quality of housing data.
“Increasing housing supply to meet underlying demand will require the Government to achieve their goal of building 1.2 million homes and continuing to grow the volume of home completions thereafter.
“Reliable data on the availability of developable land is necessary to improve the supply of new homes. The lack of this data is one of the systemic failures of the current housing system.
“The availability of skilled labour is constraining housing supply in 2024, especially for apartments in capital cities, where the demands from new migrants is most acute.
“Proposals to impose performance-based outcomes on local councils is a necessary step for the Australian government to force the increase in the supply of new homes.
“In addition to these proposals, taxation of homes results in fewer new homes being built. Governments of all tiers can increase the supply of housing by lowering the taxes, fees, charges and restrictions on new homes,” concluded Mr Reardon.
The housing industry is calling on the Australian Government to allow self-managed super funds (SMSFs) to continue borrowing to build new homes, at least until the impact of its new borrowing restrictions on housing supply is independently assessed and made public.
“HIA welcomes Senator Andrew Bragg putting National Construction Code reform squarely at the centre of the housing affordability and productivity debate,” said HIA Chief Executive – Industry & Policy, Simon Croft.
HIA has welcomed the interim report of the Senate Select Committee on Productivity in Australia, saying it confirms housing affordability and supply are now critical determinants of the nation's economic performance.
Ahead of Victoria's November election, the Housing Industry Association (HIA) is calling on all political parties to commit to one simple, low-cost principle that would provide immediate relief to the state's housing sector and small businesses: do no harm.