New housing supply is simply not expanding affordable housing opportunities for the poor in a way that reduces the homelessness count. We argue that this is due to certain barriers that prevent new supply from filtering down to low-income groups.
Politicians and economists often claim a housing supply crisis is to blame for the lack of affordable housing in Australia. They say increases in housing stock are failing to keep pace with population growth.
In a 2017 address to the Australian Housing and Urban Research Institute, Treasurer Scott Morrison said:
… for certain Australian households, housing affordability is an issue regardless of where they live due to economic reasons … However, in Sydney and Melbourne where supply has failed to keep pace with rising demand, the problem is far more acute… The principal cause of declining housing affordability is the failure of housing supply to adjust to increased demand…
Yet housing approval data from the Australian Bureau of Statics show the growth in housing stock has actually outpaced rates of population increase in all Australian capital cities.
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Source: The Conversation