Whatever announcables may come from the Government, the truth is housing crisis in Australia is far from over.
As I discussed with Leith van Onselen on Tuesday, high migration is the root cause of the problem – a problem created by bad policy and ultra-high migration. Yet some are arguing we should import more construction workers to build more homes. Sounds like shoot ready aim, to me.
Sure it is true that as Australia’s housing affordability crisis worsens, governments are spending more on housing. But as a recent The Conversation article says, without coordinated action to increase supply, government grants will have little practical effect on house affordability anytime soon.
Victoria’s Andrews government has announced a suite of reforms (such as boosting social housing and making planning processes faster) in an effort to get 800,000 extra homes in Victoria over the next decade.
Federally, the Albanese government’s A$10 billion Housing Australia Future Fund, or HAFF, has passed the Senate with the help of the Greens, who supported the bill in exchange for another A$1 billion for social housing.
And this year’s federal budget has expanded eligibility for the Home Guarantee Scheme so more people can buy a home with a smaller deposit.
But is Australia ready for a house construction boom?
Supply chain constraints say no. Ballooning construction costs and labour shortages have already claimed well-known building firms across the country. Delivering thousands of extra new homes in the coming years will not be easy.
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Today’s post is brought to you by Ribbon Property Consultants.
