Budget 2022: Business on five-year mission to deliver a million homes
The private sector will carry the burden of the Albanese government’s housing accord, designed to build a million homes over five years from 2024.
The private sector will carry the burden of the Albanese government’s housing accord, designed to build a million homes over five years from 2024.
Jim Chalmers said the efforts of all levels of government would be aligned, with institutional investors and the construction sector to also help address chronic shortages of supply.
In his budget speech, the Treasurer said the government would provide $350m in additional funding to deliver 10,000 affordable homes over five years from 2024. State and territory governments had agreed to provide 10,000 homes as well, on top of existing commitments.
Treasury said the total federal contribution would be about 40,000 dwellings.
Dr Chalmers said the housing crisis was causing significant challenges. “Rents are through the roof, and many families are struggling to keep up,’’ he said.
“Supply hasn’t kept up with demand, which means too many struggle to live close to where they work.
“Too many are stuck on waiting lists for social housing. And for too many, the great Australian dream of home ownership seems completely out of reach.’’
The accord target is consistent with what was delivered in the five years before the pandemic, the government said, with the total number of housing completions declining since 2018-19.
Dr Chalmers said the accord would recognise the fact that most of the supply would come from the market, with government enabling and kickstarting investment. “It (the accord) will align for the first time the efforts of all levels of government, institutional investors and the construction sector to help tackle the nation’s housing problem,’’ Dr Chalmers said.
Under the accord, the states and territories will be tasked with fast-tracking zoning, planning and land release for social and affordable housing.
The government will use the Housing Australia Future Fund to encourage institutions to invest in social and low-cost housing, local government will be encouraged to free up landholdings and the construction sector will be asked to back energy-efficient buildings.
“These commitments are tailored and timed to current conditions faced by the industry,” Dr Chalmers said.
“They recognise and help manage current capacity constraints and support greater stability in the housing supply pipeline.
“The Treasurer’s Investor Roundtable, a newly established forum, will explore further areas of work to promote investment in housing next month.”
The pressure on housing is looming as one of the core cost-of-living issues facing federal and state governments, with significant disruptions to supply caused by the pandemic.
Rising interest rates have added to the consumer burden, along with historically high property prices.
Governments have been under pressure to release low-cost land on urban fringes to help make housing more affordable.
Governments are also focusing on medium-density housing in the inner cities, usually around existing infrastructure, to ease the budget pressures caused by strong demand.