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- New federal housing supply arrangements may help alleviate house affordability issues by releasing thousands of additional dwellings in high-demand areas
- The suggestion was a part of Property Council’s submission to the Standing Committee on Tax and Revenue’s study into housing affordability and supply in Australia
- Property Council chief executive Ken Morrison spoke before the panel, proposing Federal “Housing Supply Deals” to improve state and local government housing supply
- Under these agreements, federal and state infrastructure money can be combined with sector contributions to alleviate infrastructure and planning bottlenecks
New federal housing supply deals might help reduce home affordability problems by freeing thousands of additional residences in high-demand locations.
The suggestion was made as part of the Property Council’s submission to the Federal Parliament’s Standing Committee on Tax and Revenue’s study into housing affordability and supply in Australia.
Property Council chief executive Ken Morrison spoke before the panel, proposing Federal ‘Housing Supply Deals’ to improve state and local government housing supply.
“You can’t tackle housing affordability in Australia without dealing with supply,” Mr Morrison said.
“As our borders reopen and our population begins to grow again, we will need to unlock new housing supply if we are to help support housing affordability outcomes for the community.
“The Federal Government can help smash supply bottlenecks by striking Housing Supply Deals with state, territory and local governments.”
Under these agreements, federal and state infrastructure money can be combined with sector contributions to alleviate infrastructure and planning bottlenecks and deliver the housing the community requires, according to Mr Morrison.
“Housing affordability is a nationwide concern and while most of the levers to address this sit with state and local governments, the Federal Government can be a bigger part of the solution,” he said.
“Housing Supply Deals can help overcome infrastructure and planning blockages to deliver new housing and apply downward pressure on prices.
“States like NSW and Queensland are failing to produce enough opportunities to build enough new homes within reach of enough first home buyers and Federal help could break this deadlock.”
The Property Council has provided data that shows huge supply shortages already exist in key detached housing markets across Australia, and that state government incentives are needed in the main capitals to avoid a potential apartment supply bottleneck by the middle of this decade.
According to the Property Council, the Commonwealth should make federal support for social and affordable housing contingent on meeting key home supply benchmarks.
“Industry would like to see the Federal Government incentivise supply, zoning and planning reforms to support states in delivering their housing obligations,” Mr Morrison said.
“All existing arrangements should have metrics attached and an expert taskforce should be formed to create a National Competition Policy-style payments scheme for states that deliver on their long-term obligations.”
