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“While an increase in the supply of higher and medium density housing will play an important role in making housing more affordable and accommodating higher numbers of people as Victoria’s population grows, it is not the only solution.
“Good housing policy ensures homebuyers of all ages and backgrounds have choice in the diversity of housing options, whether that’s an apartment, semi-detached or detached dwelling in an established or new suburb.
“The facts are that the majority of Victorians prefer to live in low to medium rise housing (i.e., 4 or fewer stories). The 2021 Census showed only 12 per cent of the population live in an apartment. Similarly, in the five years to 2022/23, less than 20 per cent of new homes built nationally have been above 4 storeys.
“This tells us that low rise buildings are also likely to continue to play a major role in meeting Victoria’s housing challenge.
“This is why we need a planning system that enables all forms of housing to be delivered with more certainty about outcomes. The system needs to be streamlined and without excessive fees, taxes and charges.
“HIA has long acknowledged the need for more public, social and affordable housing, but warned against extending the Victorian planning framework to allow councils to make it compulsory for developers to provide affordable housing, however defined, as an inclusionary requirement,” said Mr Ryan.
“Inclusionary zoning programs make some local councils and social interest groups believe they are supporting low-income families and promoting social inclusion.
“However, in a high-cost housing market unless such schemes provide powerful incentives to offset the loss a developer would incur on an inclusionary zoning home sold below market rates, there is a strong likelihood they simply won’t be built.
“Mandating inclusionary zoning will have equally adverse effects with developers likely to raise the price of market-rate dwellings in the same development to compensate for the loss. This exacerbates the affordability crisis and only adds additional pressure to house prices.
“There is no single panacea for Victoria’s housing crisis but a whole of government approach to addressing supply and demand challenges has the best chance of success,” concluded Mr Ryan.
HIA’s recently released Action Plan: More Houses for More Victorians, outlines six priority areas where reform is needed most:
The Housing Industry Association (HIA) is urging the government to hit pause on the proposed Free TAFE Bill 2024. While the initiative promises to address critical skills shortages, HIA believes the plan needs a comprehensive review before it’s locked into law.
HIA provided a response to the Senate Education and Employment Committees on the inquiry into the Free TAFE Bill 2024.
The Housing Industry Association (HIA) welcomes the Coalition’s announcement allowing first home buyers to access up to $50,000 of their superannuation to purchase a home. This initiative represents a meaningful step towards addressing the significant barriers to home ownership faced by young Australians,” stated HIA Managing Director, Jocelyn Martin.
On behalf of all of us at HIA we would like to wish you a very happy 2025! As everyone heads back to work for the new year, we are sharing some exclusive member updates to get you ready for what lies ahead.