Housing Affordability Crisis To Be Investigated In Parliamentary Inquiry
News

Housing Affordability Crisis To Be Investigated In Parliamentary Inquiry

It’s no secret that house prices are unattainable for a large majority of Australians.
Project
House Au Yeung
Architect
Tribe Studio Architects
Photographer
Katherine Lu
Product
Bowral Bricks in Shorthorn Mix
Project
London House
Designer & Builder
Dean Bolger from Castle Glenn Homes
Photographer
Black Bee Studio
Product
Austral Bricks San Selmo Reclaimed in Reclaimed Original
Project
4 Kingsley Lane, Byron Bay
Product
GB Masonry, Circle Breeze Blocks
Project
Beresford Terrace
Builder
Imperial Homes/Nick Miller
Product
Bristile Roofing La Escandella Marseille in Jaspee Roja
POSTED
07.11.2021

Despite the COVID-19 pandemic, wherein many professionals believed there would be a market crash, prices have continued to rise at an alarming rate. In fact, in 2020 alone, property in the Northern NSW town of Byron Bay rose a stellar 37%, taking the average home price up to $1.68 million. 

In the wake of this ever-inclining cost hike, a federal parliamentary inquiry has been established to investigate the serious challenge that the lack of affordable housing is bringing to Australians. 

Housing Affordability Crisis To Be Investigated In Parliamentary Inquiry

In Sydney’s Bondi, a suburb located on the Eastern Suburbs, house prices have more than doubled in 8 years, taking the median house price from $1.405 million in 2012 up to an unbelievable $2.875 million in 2020. However, between 2011 and 2020, the median household income only increased by $393, demonstrating that the median income is not able to grow at the same speed of the housing returns. 

In 2014, the Reserve Bank of Australia’s submission to the Senate Economic References Committee Inquiry into Affordable Housing noted that, ‘Australian housing prices increased by about two thirds relative to income in the decade or so up to around the end of 2003’.

Chairing the inquiry is member for Mackellar, Liberal MP Jason Falinski. The inquiry will involve the House of Representatives Standing Committee on Tax and Revenue investigating the ways in which tax and regular regimes have impacted the affordability, price and supply of available housing nationwide. 

In early comments, Falinski believed that supply was the biggest concern, arguing that it was the regulatory settings and strict laws around planning that were the biggest cause of ongoing affordability. “Arguments about the impact of increased subsidies and tax concessions on housing have continued for some time,” claimed Falinski. “There is ample evidence that points to the small effect such measures have on supply, indeed the research points to limitations on land and restrictive planning laws as the major causes of shortages in supply. As consistently noted by the RBA and others, regulatory settings are directly responsible for the unresponsive nature of housing supply in Australia.” 

Housing Affordability Crisis To Be Investigated In Parliamentary Inquiry

Following this, Falinski urged the government to take action, claiming “as data provided by the Reserve Bank of Australia (RBA), the Treasury and the Australian Bureau of Statistics (ABS) shows home ownership, one of the building blocks of Australian society, has been falling for the last 30 years. In my view, this represents an urgent moral call for action by governments of all levels to restore the Australian dream for this generation and the ones that follow.”

That being said, there is speculation that more lenient planning regulations have a significant bearing on house prices. Research conducted on a 20-year review of planning regulations and house prices in Brisbane found no meaningful link between the two, claiming, “locations with increased zoned capacity for housing saw increased (not reduced) property prices. Across the selected sites, houses increased in value by a factor of three and apartments by 2.3 over the two decades studied, as they did elsewhere in Australia”.(1)

With discussions of policy changes and stimulus packaging in place, hopefully we will see the return of the ‘Australian Dream’ of property homeownership grow for Australians in the 2020s and beyond. 

“The inquiry will involve the House of Representatives Standing Committee on Tax and Revenue investigating the ways in which tax and regular regimes have impacted the affordability, price and supply of available housing nationwide. ”

Housing Affordability Crisis To Be Investigated In Parliamentary Inquiry

“The inquiry will involve the House of Representatives Standing Committee on Tax and Revenue investigating the ways in which tax and regular regimes have impacted the affordability, price and supply of available housing nationwide. ”

Footnote:

(1)https://theconversation.com/zoning-isnt-to-blame-for-australias-soaring-house-prices-154482

Get In Touch
Build your dream home.
Learn about our products.
Learn from the best.
Join us at an event.
Get Inspired
Stay up to date with the latest trends, products projects and more on Instagram.


contact-image-1
CONTACT US
Our team is ready to help.
Call 02 9830 7800
iVisualise Icon
IVISUALISE
Visualise the exterior of your home
contact-image-3
VISIT US
Get to know our products Face‑to‑face
Find Us