TheReal Estate Institute of Australia (REIA) is calling on the Federal Governmentto urgently address issues surrounding home ownership as supply continues todiminish.
Speakingat the National Housing Forum on 16June, REIA President, Adrian Kelly said after holding their first everpolicy forum of Australias real estate agents Getting Real in Darwin,REIA had upgraded their forecast for sales and rentals to rise between 20 to 50per cent in supply shortfalls across the states.
Theamount of owner occupiers without a mortgage plummeted from 40 per cent in 1994to just 30 per cent by 2018 and this figure is expected to continue to declineas more people struggle to pay off their homes, he said.
Supplywill need to address the five categories of the housing spectrum which includeshomelessness (0.5 per cent), social and affordable housing (three per cent),private rental (27 per cent), first home buyers (15 per cent) and homeownership (67 per cent) (37 per cent with a mortgage).
Thesepercentages highlight the need to protect and promote the private sector. Whilethere is no argument that more social and affordable housing options areneeded, we do have to acknowledge that 97 per cent of Australians are concernedwith supply in the private market, Mr Kelly said.
Pre-pandemic, REIA estimated thesupply shortfall to be around 150,000 homes and this is despite the major homeconstruction boom credited widely to the HomeBuilder stimulus.
With 235,000 new Australians expected to return in force by 2023-24 afternegative population growth, enabling supply is going to be critical. Between 2023 and 2060,we can expect significant changes to the status quo that must be planned for, MrKelly said.
Accordingto REIA, housing affordability in New South Wales is at its worst ever withhome buyers spending a staggering 43.7 per cent of their income on loanrepayments while renters are now spending 27.5 per cent of their income onrent.
Outlandishmedia headlines on housing affordability are all very well and good, but thereality is we need to bring State and Federal Governments to the table totackling a housing supply plan using the same spirit, determination and fundingwe have used to fight COVID-19, Mr Kelly said.
Wantto know how Western Australia is faring when it comes to housing affordability?Read REIAs latest WA findings.