Friday, April 12, 2024

Category: In The Media

Australian Housing Wealth Is Meaningless, Destructive And Fundamentally Changing Our Society

High-priced homes do not create wealth, Alan Kohler says, they redistribute it. Now financial success is largely a function of geography, not accomplishment

My parents were married in 1951 and, with a war service loan, bought a block of land in South Oakleigh, eight miles from Melbourne’s central business district.

I don’t know what my dad was making then, but he was a carpenter and apparently the average wage of a carpenter in 1951 was about 80 shillings a week, or £350 a year. And judging by average prices back then, they would have paid about £1,000 for the land. (By the way, the median house price had more than doubled in 1950, recovering from the big fall caused by price controls during the second world war, on which more later.)

Dad built the house himself, including making the bricks, working on weekends and at night, and Mum and Dad lived in a garage, to which I was brought home when I was born and where I spent the first three years of my life. But if they had bought a house and land package, which was rather more common than building it yourself, they would have paid about £1,250. So, like the median family at the time, they would have paid about 3.5 times household income (Mum didn’t work) for their first house, which was about average for the time.

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Australia Is At Social Breaking Point. Where To From Here?

It’s grim, isn’t it? This week, we’ve heard ANZ’s chief executive declare home loans are now “the preserve of the rich”, seen the Rental Affordability Index conclude that renting is less affordable than ever, and learnt that our social cohesion is at the lowest level ever measured by the Scanlon-Monash index. All are clearly related.

Home loans are so expensive because high property prices are now meeting high-interest rates. Naturally, landlords are passing this on to renters. And those interest rates are increasing because inflation is stubbornly high, meaning however unaffordable housing is, everything else is costing more, too.

The ensuing financial stress is seeping through the community and straining our social and even political relationships. That last point isn’t my speculation. It’s what the Scanlon report found. Taken altogether, this is a picture of slow-motion breakdown.

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Western Australia To Offer Airbnb Owners $10,000 To Rent To Long-Term Tenants

Short-term accommodation owners in Western Australia will be offered a $10,000 incentive to rent their properties to long-term tenants to boost housing supply.

Airbnb owners and other short-term rental accommodation providers will be offered nation-leading incentives of $10,000 to make their properties available to long-term tenants in Western Australia.

The scheme is part of a slew of changes introduced by the Labor government to boost housing supply and regulate the growing short-term rental market.

Community groups say the strategy could double the state’s rental housing supply.
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A Housing Crisis Is Unfolding For Many Older People

The Australian welfare system, including the Age Pension, was designed on the assumption that older people own their home and can age there.

But the latest National Seniors Australia research has shown this to be far from true for many of us.

In February this year, the 11th National Seniors Social Survey, or NSSS-11, asked more than 5,300 people aged 50 and over about their housing situation.

It revealed housing affordability concerns plague two-thirds of us, and more than half are living in homes unsuitable for later life because they need modifications, security of tenure, or assistance to manage their size.

The findings are consistent with the alarm bells already ringing across the country about rental and mortgage crises, showing they affect older people as well as the young.

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Australia Sleepwalks Into Calamitous Rental Crisis

The rental market in Australia has completely gone mad.

According to the most recent rental vacancy statistics from CoreLogic, PropTrack and SQM Research, Australia’s capital city vacancy rate fell to an all-time low of around 1.0% in September, with every market in Australia suffering exceptional tightness

The scarcity of available rental properties has pushed rental inflation to its highest level in decades, with PropTrack recording 12.2% growth in capital city rents in the year to September, driven by 18.2% growth in Sydney, 14.9% growth in Perth, and 13.6% growth in Melbourne

Australia’s housing crisis is “only going to get worse”

REA Group’s Economist Anne Flaherty warned that Australia’s housing crisis is “only going to get worse” as demand from strong immigration continues to far outrun housing construction.

“Over August we did see approvals increase by 7%. But compared to 12 months earlier they were actually down over 20%”, Flaherty told Sky News Business Editor Ross Greenwood.

“This is really problematic if you think about the fact that our population is growing so rapidly”.

“We know that over the 12 months to March, our population increased by 563,000 people. So, unless approvals pick up the issues, we’re seeing with undersupply at the moment are only going to get worse”.

“Unfortunately, building approvals are your best-case scenario of how many homes are going to be developed. Because the reality is that just because a property is approved for development does not mean it is going to get off the ground”.

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The federal government’s signature housing policy has passed. This is what it’ll actually do

After more than half a year stuck in the Senate without enough support to become law, the Housing Australia Future Fund (HAFF) has finally passed parliament after Labor struck a deal with the Greens.

While it’s been touted by the government as the biggest-ever investment into affordable housing in Australian history, the policy is a little complicated, as it isn’t a direct injection of funding into housing.

‘Whole Housing System In Crisis’: Report Finds Australia’s Emergency Accommodation Is Often Unsafe

Study finds lack of available social housing and unaffordable private rentals mean people entering crisis accommodation have no pathways out

Emergency accommodation is often unsafe, inappropriate, of poor quality and compounds the trauma of people experiencing housing crisis, a new report has found.

The lack of available social and affordable housing coupled with inaccessible and unaffordable private rentals meant that most people who entered crisis accommodation had no meaningful pathways out.

Demand for emergency housing was also vastly outstripping supply, which meant services were resorting to acquiring unsuitable and often unsafe short-term accommodation, such as in rooming houses, hostels, motels and caravan parks.

Read the original article at The Guardian

Australian Housing Crisis: Nation to fall more than 60,000 short of target in first year: HIA

Australia is on track to fall more than 60,000 new homes short of the 240,000 total needed in the first year of an ambitious new housing affordability crisis-busting program.

And a leading economist has warned to get the numbers up state governments will need to encourage foreign investors, reconsider property taxes and slash planning timelines.

The Housing Industry Association’s National Outlook released today forecasts just 178,839 new apartments, townhouses, units and houses will be built next year.

In 2025 the projections suggest only 195,105 homes will be added to the nation’s housing supply.

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1 In 2 Young People Are Being Turned Away From Accessing Crisis Housing Accomodation

In the midst of a housing and cost of living crisis young people are finding it increasingly harder to find a place to call home.

TikToks capturing hordes of people inspecting (most likely) mould speckled homes on the weekends and conversations of significant rent hikes have become fixtures of what it means to be a young person right now, and for some, things can only be spread so thin before it crumbles.

This week marks National Homelessness Week, and has prompted the NSW Government to reaffirm its plan to drive down homelessness across the state.