Change needed to stop home dream dying forever

HOME ownership is a key goal for many Australians. Owning a home signifies stability, security and comfort; a personal safe haven in which one can seek shelter and feel completely at ease.

Australian Prudential Regulation Authority chairman Wayne Byers.

HOME ownership is a key goal for many Australians.

Owning a home signifies stability, security and comfort; a personal safe haven in which one can seek shelter and feel completely at ease.

It should not be restricted for the overly privileged, but right now it looks as if we are heading that way.

According the latest findings of the Household, Income and Labour Dynamics in Australia study — one of the largest national household surveys — the chances of home ownership are rapidly slipping away for Australians.

The ongoing survey of 17,000 people tells us less
than half the nation’s adults can expect to own a home in their lifetime.

Victoria has experienced the biggest drop in home ownership across the country.

In 2001, Victoria was the home ownership capital of Australia — but today, our rates are at a record low.

We are clearly in the midst of a housing affordability crisis, and unless we do something about it, many Australians will be left disappointed — their goal to own a home slipping into “unrealistic dream” territory.

I am not just referring to family homes in prosperous suburbs. First homebuyers looking to get a foot in the door with an entry-level buy in an inexpensive area are being locked out of the market.

The HILDA report shows the cheapest homes in Australia have experienced a price rise of 108 per cent between 2011 and 2014.

This tells us even the most affordable properties have become far less affordable for the average Australian.

‘To help with housing affordability, we need more homes.’

This is concerning and demands attention.

To help with housing affordability, we need more homes. This is especially true in Victoria, which is the fastest growing state in the nation.

According to new figures released by the Victorian Government, our population is expected to rise to more than 10 million in the next 35 years due to migration, birthrates and life expectancy.

We need 2.2 million more dwellings to accommodate this growth, which equates to almost 63,000 new homes each year until 2051.

If we are to help with the housing affordability crisis for the growing population, we must maintain a long-term supply of housing.

The logical next steps are to create more homes and the infrastructure to support them.

Unfortunately, Victoria’s residential development industry has been hit with regressive policy decisions that restrict its ability to cater for the state’s present and future communities.

These include changes in regulation by the Australian Prudential Regulation Authority, changes in lending policy by the banks, increases to state taxes on foreign investment, planning controls in the CBD and proposed design measures governing apartment development.

The impacts of poor policy decisions in these areas do not simply affect the urban development industry; they obstruct everyday Victorians hoping to own a home.

The solution to our housing affordability crisis — one that will worsen without positive action — is to make significant changes that enable growth in the housing sector rather than those that hinder its success.

If the residential development industry cannot access the funding it needs, or rely on international investors, or overcome excessive red tape, then it cannot build the homes that Victoria requires.

Our residential property industry is calling out for urgent attention from policy makers and regulators.

Action must be taken to facilitate a stronger and healthier housing market, not just for us but for all those who want to own a home one day.

Home ownership should not be for a select few — we need to reverse present trends and start enabling people to enter the property market.

Government needs to make a step forward in this respect and give serious consideration to the issues that affect the housing industry — only then can we offer affordable housing for Australians.

DANNI ADDISON IS THE URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA’S VICTORIAN DIVISION CHIEF EXECUTIVE