Home ownership dream slips away as lack of supply, competition bites

HOME ownership in Australia has been considered a right for many over the decades.

You leave your family home to work or gain further education, or both, then you buy a vehicle and then set your sights on buying a home; it was no big deal back in the day.

But this dream has been slowly eroded as lack of supply, and increased regulation see the price of land, and the cost to build, skyrocketing beyond the grasp of many first-time buyers.

The industry peak bodies continue to reiterate the urgency of making new housing a priority in Australia if there is to be any chance of hitting the big build target or 1.2 million homes.

This requires a combination of policy reforms, strategic planning, and collaboration among various stakeholders.

The HIA say home ownership is the bricks and mortar that has helped Australia build a stable and vibrant society, but the opportunity to build and own a home has become out of reach for too many.

HIA managing director Jocelyn Martin said this is fundamentally wrong and must be the highest priority for political parties across the spectrum to address and resolve.

“The latest home ownership rates report record lows of 61.4 per cent with many Australians not seeing themselves ever realising their home ownership dream.

“A well housed population is more productive, cohesive and healthy; the delivery of housing in all forms, across our cities and in our regions must be a priority.

“As home ownership remains one of the most important aspirations for all Australians, it is critical that an incoming federal government recognises this and implements meaningful policies that enable all Australians to build and own their own home.”

The data shows Australia needs to maintain housing supply at about 240,000 new dwellings per annum year on year to meet demand and put downward pressures on affordability.

But we are way off that target as red tape, cumbersome policies, and the economic environment is acting as a hand brake on our industry resulting in only 170,000 new homes being delivered over a 12-month period.

In response to this number, the HIA is calling on all sides of politics to commit to pulling out all stops and implement genuine policy reforms to support the delivery of appropriate housing to meet Australia’s growing population.

“Our industry is being weighed down by increasing taxes and regulations, skills shortages, uncertainty in policy making and rising costs, all contribute to making housing less affordable to rent or buy and driving up construction costs and hurting industry productivity,” Ms Martin said.

“For this year’s federal election, HIA calls on all political parties to adopt a multi-pronged plan to secure a strong supply of future housing matched to growing demand.

“These would include a plan that addresses long-term structural issues in delivery of adequate housing, a plan that requires bold leadership and co-ordination across all areas of government, a plan the recognises that not one single policy area can address these challenges and importantly a plan that goes beyond a single election cycle.”

HIA is calling on the next federal government to:

Address the chronic skills shortages in the industry Remove the barriers to the supply of housing, and Establish financial settings that encourage home ownership.

HIA and ABS data show the housing industry built 1.7 million homes over the past decade, creating jobs for 1.1 million people and generating $105 billion in activity each year.

“This industry is the lifeblood of Australia and it’s time to get serious about removing the blockers to let builders build the homes to house all Australians,” Ms Martin said.

As renters and buyers scramble to find a home, lack of new supply is driving costs up.