9 goals for housing: Inaugural national supply and affordability report released

A 200-plus page document comprising eight chapters, the first State of the Housing System underscores that the country is in the midst of a housing crisis and determines that over the short term, housing affordability is only set to deteriorate. The report describes a perfect storm in which high interest rates, construction constraints, labour shortages, increased migration and declining social housing investment has left the country with demand excessively outstripping supply, leading to skyrocketing costs.

The body now has a mammoth task ahead of it in advising the nation how to right this imbalance. And while it found that the supply target agreed to in the National Housing Accord of building 1.2 million new homes over five years was suitably ambitious, ultimately its projections estimate the nation will have built 903,000 private dwellings and a further 40,000 social and affordable dwellings once time has been called on the half-decade initiative.

As the council supports the nation along that path, it will also be working to carry out nine goals spanning the industry subsectors to improve the system so that housing one day meets the needs of the community and the economy. The goals aim to ensure:

1. Housing is affordable, fit for purpose and secure for households across income and geographic distributions.
2. There is fair access to home ownership, or alternative tenures that offer comparable benefits.
3. There is secure and dignified housing for tenants, and a sufficient return for investors.
4. There is a supply of new, well-located housing that matches the needs of Australia’s growing population and supports a productive economy.
5. There is efficient distribution and exchange of the existing housing stock.
6. The housing stock is environmentally sustainable and energy-efficient.
7. Social and affordable housing is provided in sufficient amounts to fulfil its role as essential infrastructure for sustainable, productive and cohesive communities.
8. Experiences of homelessness are rare, brief and non-recurring.
9. The targets under the National Agreement on Closing the Gap for housing are achieved.

“The council’s vision for Australia’s housing system is one where shelter is affordable, secure and sustainable for households across income and geographic distributions,” National Housing Supply and Affordability Council chair Susan Lloyd-Hurwitz explained at the report’s release,

Housing Minister Julie Collins, the recipient of the report, acknowledged that the vast document “laid bare the challenges in Australia’s housing system”.

“Our government understands this challenge also provides us all with an opportunity – to change our housing system. To change direction,” Collins said.

“A fairer housing system that works for Australians is critical to ensuring that opportunity is shared equally in this country,” she added.

Industry weighs in

Across the property, urban development and construction sectors, industry leaders overwhelmingly agreed with the overarching message contained within the report.

“This important report shows the government’s housing targets are Australia’s best chance of bridging our housing deficit,” Property Council chief executive Mike Zorbas said.

“In the report’s own words, we need more housing of all types – social housing through to market home ownership,” he added.

Urban Development Institute of Australia president, Col Dutton, agreed with Lloyd-Hurwitz that “building a better system will require focused, coordinated and consistent effort over the long run across all jurisdictions,” and he commented that UDIA’s membership stood ready to contribute to the cause.

While the Housing Industry Association’s (HIA) chief economist, Tim Reardon, lamented the forecast that will see Australia fall short of its National Housing Accord target, he welcomed the policy initiatives that sought to constrain rental price growth and house price growth, suggesting that as another measure of success in the years ahead.

“Success is a rental vacancy rate above 3 per cent in every local council across the economy,” Reardon commented.

Master Builders Australia CEO Denita Wawn, particularly welcomed the report’s recommendation that “more is needed to boost the industry’s capacity by improving availability of skilled labour, enhancing flexibility in supply chains, increasing the availability of financing and bolstering sector productivity”.

“We have heard a lot of talk from the government about lifting productivity, but it is now time for action,” Wawn said.

“Minister Collins is pursuing some great housing initiatives, but she is being thwarted by a lack of a holistic approach in other portfolios,” she commented.

Wawn also affirmed Master Builders’ commitment “to continue working closely with governments to ensure we are in the best position to meet our home building targets”.