Mike Zorbas (pictured above), CEO of the Property Council, shared a dire prediction last week from the National Housing Supply and Affordability Council, indicating that by 2029, only 943,000 of the needed 1,200,000 homes will be built, pointing to a severe upcoming deficit in housing supply that threatens to intensify the affordability crisis.
The council’s recent report, “State of the Housing System 2024”, outlined 10 areas to enhance the housing landscape.
These include increasing social housing investments, enhancing rental market conditions for tenants, and boosting construction sector capacity, enhancing the efficiency of land use and planning systems, increasing data availability, and tackling region-specific housing challenges. There are also improving housing outcomes for First Nations, assessing the appropriateness of the national housing target, and ensuring that Australia’s taxation system supports housing supply and affordability.
“In the report’s own words, we need more housing of all types – social housing through to market homeownership,” Zorbas said in a media release.
He pointed to planning efficiency, land release, and infrastructure as critical areas where government action can make a substantial impact.
Zorbas also discussed the potential of alternative housing solutions like purpose-built student accommodation and build-to-rent (BTR) housing to relieve market pressure.
The Property Council chief noted that forthcoming federal government decisions could significantly influence this sector.
“On BTR housing, the federal government currently has a unique opportunity to replicate overseas success through the legislation it is reviewing in the next fortnight,” Zorbas said.
Successful reforms could lead to the creation of 160,000 new homes by 2033.
Challenges and criticisms in Victoria
The recent budget decisions in Victoria have not met the industry’s expectations, according to Cath Evans, Victorian executive director.
“The Allan government’s continuation of the uncompetitive tax status quo will only preserve the hostile investment environment in Victoria that is driving capital to find – and very literally build – a home somewhere else,” Evans said.
This sentiment underscores the urgent need for policy reforms that support housing development and investment.
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Zorbas acknowledged the complexity of the housing challenges and stressed the importance of ongoing conversations between the government and the property sector.
“We recognise the extent of the challenges the state is dealing with and it is critical that the government continues the dialogue with the property industry to work through the short and long term issues together,” he said.
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