Federal ‘Housing Supply Deals’could smash supply bottlenecks to ease affordability pressure
New Federal ‘housing supply deals’ could help ease housing affordability pressures by unlocking thousands of new dwellings in key areas of housing need, according to the Property Council of Australia.
The recommendation came as part of the Property Council’s evidence to the Federal Parliament’s Standing Committee on Tax and Revenue inquiry into housing affordability and supply in Australia.
In appearing before the inquiry, Property Council Chief Executive Ken Morrison proposed Federal ‘Housing Supply Deals’ to boost state and local government housing delivery.
“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 deals, federal and state infrastructure funding can be added to the industry’s own contributions to clear out the infrastructure and planning logjams to deliver the housing the community needs.
“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.
“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.
“With net overseas migration recommencing as international borders reopen, this is the right time to undertake some of the bold reforms needed to unlock sections of land in growth corridors of our largest cities and towns.”
The Property Council has presented evidence that large supply gaps already exist in key detached housing markets across Australia and that the major capitals need state government incentives to stave off a looming apartment supply crunch by the middle of this decade.
The Property Council proposes that the Commonwealth should make federal funding for social and affordable housing contingent on achievement of key housing supply targets.
“Industry would like to see the Federal Government incentivise supply, zoning and planning reforms to support states in delivering their housing obligations.
“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.
“As shown through the strong work of NHFIC, the Federal Government does have an influential role to play monitoring and spurring better state and local government support for our long-term national housing supply needs,” Mr Morrison said.
