Housing Crisis Intensifies

According to the latest ANZ/Property Council Survey, concerns regarding national housing supply and affordability have reached an all-time high in the property sector.

The survey highlights that the housing supply crisis is now the most pressing issue for federal and state governments, surpassing tax reform and infrastructure delivery. Factors such as long-term planning regulations, economic constraints, population growth, and rising rents have contributed to the housing supply challenges. Developers are struggling with increasing rates and costs, making it difficult to meet the strong demand for housing.

The survey also indicates that confidence in the property sector remains stable, with slight improvements in interest rate expectations. However, inadequate planning systems and regulatory barriers are identified as obstacles to increasing housing supply. It is estimated that zoning, planning, and building regulations have prevented the delivery of approximately 1.3 million homes over the past two decades. The survey emphasizes that increasing the housing supply by 10 percent could lead to a 25 percent reduction in housing costs.

The Property Council is urging governments to take responsibility for increasing housing provision across all market segments, including social and affordable housing. They are calling for national targets for housing and planning improvements, as well as the passing of the Australian government's Housing Australia Future Fund in the Senate. These measures are seen as crucial steps to address the housing supply and affordability challenges in the country.

Source: https://www.afr.com/policy/economy/don-t-overdo-it-on-interest-rates-leading-economists-warn-rba-20230705-p5dlxt