After a record 20 per cent rise in house prices during the past year, housing affordability stress is accelerating far beyond sustainable levels.
Since the early 2000s, average capital city prices have risen 200 per cent compared to an 82 per cent rise in wages, while the average house-price-to-income ratio has more than doubled.
As pressure mounts on government, questions remain: how will we respond, what is the role of the private sector and how will it be funded?
In this TUD Plus Briefing, taken from The Urban Developer Affordable & Social Housing vSummit, the Australian Housing and Urban Research Institute’s managing director Dr Michael Fotheringham unpacks the condition of the sector around Australia state by state.
“One of the challenges we have is the blurred lines of responsibility for housing and housing affordability,” Fotheringham said.
“The federal government does have some responsibility around policy and funding, and so do the states and territories.
“In terms of delivery, the states take the role, but local government is picking up more, and that’s a really pleasing thing to see.
“One of the gaps in the sector in Australia is the lack of council-led housing, compared to countries similar to us.
“Regulation is shared at multiple levels, so there’s not a single tier of government responsible for housing as an issue—that lead to the usual sorts of confusion between layers of government.”