Rates ‘very small part’: Real reason housing crisis is worsening

Amid unprecedented population growth, community leaders are preparing for a forum which will help plan the way out of the worst housing shortage the region has experienced.

Fraser Coast Property Industry Association (FCPIA) President Glen Winney.

Amid unprecedented population growth, community leaders are preparing for a forum which will help plan the way out of the worst housing shortage the region has experienced.

While the recent council rate rise by 3.5 per cent, caused many ratepayers to express concern this would cause the housing crisis to deepen, the Fraser Coast Property Association believes rates are only “a very small party” of a wider problem.

The bigger concern for FCPIA is the lack of residencies for unprecedented population growth.

Fraser Coast Property Industry Association (FCPIA) President Glen Winney.

FCPIA president Glen Winney said the council needed to address these issues through more projects, including sewerage, water and drainage.

Mr Winney said although these were not “sexy” or “popular things”, they were vital for the region’s future.

“The council was caught unaware, as the rest of us were, in regards to accelerated growth and now has to play catch up like everyone else,” he said.

“The only way for us to get rates down longer term is to slow down urban sprawl.”

This would include changing living environments, to include more lifestyle villages, units and duplexes.

With minimal vacancies seen across Fraser Coast rental properties, combined with a lack of new rental properties available, the federal government’s home builder grant is also adding extra pressure to the housing crisis.

“With the federal government home builder grant, most new houses are getting built for owner occupiers because that’s where the incentives are, therefore our normal supply of new investment product has dropped dramatically in the last 12 months,” Mr Winney said.

“Now the home builder grant is over, we are seeing investors coming back into the market, but it could take 12 months to balance out the vacancy shortage.”

A regional boom, where people are moving out of cities, particularly in the wake of COVID-19 lockdowns and the ability to work from home, to live in places like Hervey Bay is also adding more pressure to the housing supply.

“With the building boom and now serious supply and trade shortages, we are getting long delays in house construction completion dates and therefore people aren’t moving out of existing houses or their rental to moving into the new ones,” Mr Winney said.

“One part of the market we are not seeing getting fixed at the moment is the social housing crisis and the homeless, there needs to be more focus on affordable accommodation and State government spending on housing.”

FCPIA and the Fraser Coast Regional Council will hold a Housing Crisis Workshop on June 24 at the Beach House.

For more information, visit here.