Qld state budget to pledge $322m for 500 new homes

Hundreds of millions of dollars will be spent on a deepening housing crisis in one Australian state where “families are living in cars”.

The state has battled skyrocketing rental prices. Picture: NCA NewsWire / John Gass

The Queensland government has promised another 500 social housing residences by 2025 under a $332m investment ahead of handing down its state budget on Tuesday

Premier Annastacia Palaszczuk was joined by Treasurer Cameron Dick and Housing Minister Leeanne Enoch on Monday morning as they outlined plans to alleviate pressure on the state’s housing crisis.

This follows the government’s record $3.9bn investment in social and affordable housing to deliver 13,000 homes across the state.

“We’re seeing some moderation in the cost of building supplies and also in labour, but the pressure remains,” Mr Dick said.

“We need to pull every possible lever.”

Queensland Treasurer Cameron Dick and Queensland Premier Annastacia Palaszczuk made the announcement on Monday morning. Picture: NCA NewsWire/Tertius Pickard

Service providers have previously warned that the state’s housing crisis could intensify even further, with nearly 300,000 Queenslanders experiencing housing insecurity.

Queensland has endured skyrocketing rental prices amid the cost of living crisis, with Brisbane rents increasing 11.6 per cent in the past year.

According to PropTrack, the median rental price of houses in the city is $530 per week, while the rental price of units, which has risen 10 per cent, remains at $440 per week.

This outranks every other capital city across the country.

Queensland’s housing crisis is poised to intensify. Picture: NCA NewsWire / John Gass

In March, Queensland Council of Social Service chief executive Aimee McVeigh said homelessness had grown by 22 per cent in Queensland since 2017 compared with an increase of just 8 per cent across the rest of the nation.

Calling for increased housing supply, Ms McVeigh said there were “families, mothers and children, living in cars, tents and hotel rooms across (the state) right now”.

Data released by the Productivity Commission earlier this year showed Queensland was spending the least per capita on social housing in the country.

Ms McVeigh said families had been forced to live in cars and tents. Picture: NewsWire / Sarah Marshall

Mr Dick said constraints were caused by the state’s construction pipeline being held “at capacity” due to supply chain disruptions and the rising cost of building supplies and labour.

“We (have) seen some changes happening which will free up more housing, but we can’t stand by as a government, we’ve got to do more,” he said.

“(That) is why we put a record investment into social and affordable housing, $4bn, and this is an additional investment on top of that.”

Ms Palaszczuk added “additional pressure” was being placed on the housing market by the “thousands” of people continuing to move to Queensland.

Mr Dick said the government had ‘to do more’ to address the crisis. Picture: NCA NewsWire/Tertius Pickard

Reaffirming his support for the federal government’s Housing Australia Future Fund, Mr Dick took aim at “the extreme left and the extreme right” preventing the Bill from passing in parliament.

“We really need the LNP and the Greens political party to come together and do the right thing by Aussies and Queenslanders who need a roof over their heads,” he said.

The fund would allocate $10bn to build 30,000 new social and affordable housing properties in its first five years, with future investment returns used to fund similar housing projects.

Details regarding the geographical distribution of the new 500 social homes will be announced at a later date, although areas of the greatest need “all across the state” will be prioritised.

Mr Dick said Tuesday’s budget would focus on housing, health, community safety and improving the cost of living.

Originally published as Qld state budget to pledge $322m for 500 new homes