Housing affordability is one of the biggest pressures facing the Australian community and the Government has committed to building 1.2 million new, quote well-located homes across Australia by mid-2029. This is all but impossible, on current trends, and of course housing pressures have been exacerbated by super-high migration.
The NSW Productivity and Equality Commission just released a report: Review of housing supply challenges and policy options for New South Wales.
In summary, New South Wales needs to build 377,000 homes by mid-2029 under its housing targets. The Productivity and Equality Commission recommends Higher-density zones around train stations would double in size and extend further into Sydney’s eastern suburbs and north shore. They are recommending design standards be relaxed to allow the construction of smaller apartments without access to parking, storage or direct sunlight. They say government spending priorities would shift from infrastructure projects like new metros and motorways, to projects that support rapid housing supply. And there would be more migration opportunities for construction workers, to address a critical skills shortage.
Even then I suspect targets wont be met. But to me, by not talking about the demand side of the equation – driven by too high migration they are missing the elephant in the room. As a result, they are proposing we build higher, smaller darker homes – as high-rise living is forced more widely on the population. This risks further degrading the standards of living for many. True while some may be willing to pay less to get anything to live in, the trade-off and compromises are enormous.
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