Corelogic House Index

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>For eight consecutive months Melbourne and Sydney house prices have grown, yet market analysts warn that affordability and a potential pandemic are a cause for concern.</p><p>Nationally, property values recorded a 1.2 per cent lift in February across the combined capital cities, according to the latest figures from Corelogic&#x27;s monthly home value index.</p><p>Values grew by 1.2 per cent in Melbourne and 1.7 per cent in Sydney over the month of February, following a peak-to-trough decline of 14.9 per cent in Sydney and 11.1 per cent over the duration of the <a href="https://theurbandeveloper.com/articles/is-the-downturn-over-house-prices-begin-to-rise">housing downturn</a>.</p><p>House prices rebounded by 10.9 per cent in Sydney and 10.7 per cent in Melbourne for the 12 months to February, with median values now at $872,934 and $689,088 respectively.</p><p>Despite posting the most rapid recovery trend among the capitals, Sydney housing values remain 3.7 per cent below the 2017 peak.</p><p>Price rises in the other capital cities have been less pronounced. Brisbane saw a moderate gain of 0.6 per cent, with Hobart and Canberra both seeing 0.8 per cent growth.</p><p>“At the current run rate of growth, the national index is likely to reach a new nominal high over the next two months,” Corelogic head of research Tim Lawless said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>City</th><th>Month</th><th>Quarter</th><th>Annual</th><th>Median value</th></tr></thead><tbody><tr><th>National</th><th>▲1.1%</th><th>▲3.0%</th><th>▲6.1%</th><th>$549,918</th></tr><tr><th>Sydney</th><th>▲1.7%</th><th>▲4.6%</th><th>▲10.7%</th><th>$872,934</th></tr><tr><th>Melbourne</th><th>▲1.2%</th><th>▲3.9%</th><th>▲10.7%</th><th>$689,088</th></tr><tr><th>Brisbane</th><th>▲0.6%</th><th>▲1.7%</th><th>▲1.9%</th><th>$503,265</th></tr><tr><th>Adelaide</th><th>▲0.1%</th><th>▲0.8%</th><th>▲0.4%</th><th>$439,453</th></tr><tr><th>Perth</th><th>▲0.3%</th><th>▲0.4%</th><th>▼-4.0%</th><th>$442,691</th></tr><tr><th>Hobart</th><th>▲0.8%</th><th>▲1.9%</th><th>▲5.0%</th><th>$488,968</th></tr><tr><th>Darwin</th><th>▼-1.4%</th><th>▼-1.8%</th><th>▼-7.8%</th><th>$386,345</th></tr><tr><th>Canberra</th><th>▲0.8%</th><th>▲1.1%</th><th>▲4.1%</th><th>$631,862</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sub>^ Change in dwelling values to 29 February 2020. Source: Corelogic</sub></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The strongest value gains continue to be recorded across properties in the upper quartile value range lifting by 1.6 per cent in February compared with 0.4 per cent in value across the lower quartile.</p><p>Sydney’s top quartile market has recorded a 13.3 per cent lift in dwelling values over the past twelve months compared with a 5.6 per cent rise across the lower quartile. </p><p>Similarly, Melbourne&#x27;s top quartile is up 14.2 per cent in value over the past year compared with a 7.6 per cent rise in lower quartile values.</p><p>Rental growth, which remains generally weak across most markets, were up four tenths of a percent in February, taking the annual change in rental rates to 1.4 per cent. </p><p>Corelogic forecast that the market momentum was unlikely to continue as sluggish pace of household income coupled with rising  stock levels likely hindering affordability.</p><p>The <a href="https://theurbandeveloper.com/articles/coronavirus-construction-supply-chain-impact">coronavirus outbreak</a> could also be determining factor that impacts the market over coming months, Commonwealth Bank senior economist Gareth Aird warned, pointing to the possible damage to consumer confidence and the flow-on effects this can have to different industries.</p><p>“The potential fallout from COVID‑19 on economic activity means that any concerns around briskly rising house prices will be swept aside in near term monetary policy decisions.” </p><p>Analysts warned that while demand remained insulated from a downturn in foreign buyers, the economic impact on key export sectors such as education, tourism and commodities is likely to result in weaker economic conditions and lower consumer sentiment. </p><p>Capital Economics senior economist Marcel Thieliant said that auction clearance rates, available until 23 February, fell from 77 per cent in December to 69 per cent in February, allowing for seasonal factors. </p><p>“That could be a sign that the outbreak of the disease has started to tend demand. </p><p>“However, the continued strength in house prices suggests that the Reserve Bank of Australia won’t be as eager to cut rates as many are anticipating. </p><p>“We still expect the bank to wait until April before lowering interest rates any further.” </p></div></div></div></div></div>

    For an eight consecutive month Melbourne and Sydney house prices have grown.

Hobart least affordable city

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>For the second year running, Hobart is the least affordable city to rent in Australia, and Adelaide has overtaken Sydney as the second-least affordable capital, a new report has found. </p><p>The Rental Affordability Index is an indicator of the price of rents relative to household incomes based on new rental agreements. </p><p>It is released annually by National Shelter, Community Sector Banking, SGS Economics &amp; Planning and the Brotherhood of St Laurence.</p><p>A score of 100 and below on the index shows that households on average incomes would be required to spend at least 30 per cent of their income on rent. </p><p>Greater Hobart is the only capital city where rental affordability has dropped below this critical threshold, falling to a rental affordability index score of 93 in June 2019 and putting the city’s rents in the “unaffordable” category. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/bbb1ed04-f5f9-487a-9a5c-53d7a766efa4.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The Rental Affordability Index (RAI) is an indicator of the price of rents relative to household incomes based on new rental agreements. Image: Getty Images</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>According to the report, the median rental household in Greater Hobart has a gross income of $64,500 per annum, with high rents, relative to household incomes, making it the least affordable metropolitan area in Australia.</p><p>The main drivers behind Hobart’s continued nosedive are seen as low incomes and an inadequate supply of rental housing, with SGS Economics and Planning partner Ellen Witte calling for urgent government intervention.</p><p>“Hobart is in the midst of a rental crisis, the worst in the country,” Witte said. </p><p>“There is a lack of new supply, while stock is being lost to the short-term holiday accommodation market. </p><p>“The Tasmanian Residential Tenancy Act needs to be reviewed like Victoria has done.”</p><p>In March, Tasmania’s Minister of Housing Roger Jaensch released a progress report on the state’s Housing Summit Action Plan, outlining a range of measures being taken to address supply issues in Hobart and around the state.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/b4a465a2-209c-48e6-9648-74b45caa76f2.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Tasmania&#x27;s Minister of Housing Roger Jaensch. Image: Simon Sturzaker</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Measures already in place include the Housing Land Supply Act 2018, a new process which will see more houses delivered faster through a new fast-track zoning process of surplus government land, aimed at increasing the supply of social and affordable housing. </p><p>The first of these sites have been approved in Rokeby, Devonport, and West Moonah. </p><p>Adelaide’s ranking as the nation’s second-least affordable capital city—overtaking last year’s runner-up, Greater Sydney—has been attributed to slow income growth compared to other capital cities and rising rents.</p><p>And while affordability in some Australian cities, including Sydney, has improved marginally, the situation remains untenable for tenants on Newstart regardless of postcode: in every capital city, they are spending at least 77 per cent of their income on rent.</p><p>Community Sector Banking head of relations James Barron said that rental stress is affecting the majority of very low-income Australian households.</p><p>“People on Newstart are being hit particularly hard, being pushed to the outer fringes of our cities and away from opportunities for training and employment.</p><p> “Even in cities with higher than average incomes and better than average rental affordability, the plight of low-income renters continues to deteriorate.”</p></div></div></div></div></div>

Low income households are struggling in every capital city…

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>The average 7 per cent fall in house prices will come as a welcome relief for many Australians as new research reveals that the proportion of household income needed to meet mortgage repayments declined over the year to March.</strong></p><p>Credit ratings agency Moody’s has forecast continued improvement in housing affordability as prices continue to retreat over the next 12 months. </p><p>With new figures forecasting a peak-to-trough <a href="https://theurbandeveloper.com/articles/how-does-the-housing-downturn-compare-to-previous-cycles-">decline of 30 per cent in residential construction</a> and Moody’s predicting declines of 11.4 per cent in Melbourne and 9.3 per cent in Sydney <a href="https://theurbandeveloper.com/articles/housing-values-record-sharper-decline-than-apartments-moodys">this year</a> — housing affordability for new mortgage borrowers will continue to improve.  </p><p>“More affordable housing reduces the credit risks of newly-originated mortgages, which is positive for new residential mortgage-backed securities (RMBS) backed by such loans,” Moody’s senior analyst Alena Chen said. </p><p>Over the year to March, the proportion of household income needed to meet mortgage repayments — Moody’s measure of housing affordability — declined to 26.5 per cent from 28.7 per cent.</p><p>Australian households with two income earners taking out an 80 per cent loan-to-value ratio need an average 26.5 per cent of their monthly income to meet monthly repayments, falling below the 10-year average of 28.7 per cent.</p><p>“We expect housing prices to continue to fall moderately over the next year – due to reduced credit supply by the banking sector – and incomes are also rising, and these two factors are in turn driving further improvements in affordability,” Chen said. </p><p>House prices have surged 42 per cent in Sydney since early-2013 and 30 per cent across the rest of the country, weighing on household indebtedness and financial stress. </p><p>Homelessness <a href="https://www.launchhousing.org.au/site/wp-content/uploads/2018/05/LaunchHousing_AHM2018_Report.pdf">has increased 2.8 per cent a year</a>, and it still takes <a href="https://theurbandeveloper.com/articles/improved-housing-affordability-short-lived-report-">more than 9 years on average</a> for the typical Australian household to save for a 20 per cent deposit. </p><p>Moody’s predicts that while house values will continue to fall over the next year, 2020 will be a year of recovery.</p><p>“A slow housing recovery in 2020 is likely as the local economy improves thanks to population growth,” Moody’s economist Katrina Ell said.</p><p>Related: <a href="https://theurbandeveloper.com/articles/unusual-for-falling-property-prices-amid-low-interest-rates-rba-says">Falling Property Prices ‘Unusual’ Amid Low Interest Rates, RBA says</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/2be937eb-9e1c-45f8-93e7-a995228e6f19.jpg" width="1254"/></picture><div><span style="align-content:center;opacity:0.8">Aerial view of Bondi.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><br><strong>Sydney the ‘most sensitive’ to house price changes</strong></h2><p>Sydney has recorded the largest improvement in housing affordability, with house prices declining 10.7 per cent over the year to March 2019. </p><p>Housing affordability improved in Melbourne, Brisbane and Perth over the year to March 2019, while affordability deteriorated in Adelaide. </p><p>Moody’s tested the impact of changes to house prices, incomes and interest rates on housing affordability — with Sydney the most sensitive city to changes in all three variables.</p><p>“Our sensitivity test shows that for every 10 per cent change in housing prices, the percentage of household income needed to meet mortgage repayments changes by 2.6 percentage points on average in Australia,” Chen said.</p><p>“In Sydney, the least affordable city, a 10 per cent change in housing prices results in a 3.3 percentage-point change in the percentage of household income needed to meet mortgage repayments, the most of any Australian city.”</p></div></div></div></div></div>

The average 7 per cent fall in house prices last year will come as a welcome relief for many Australians.

AHURI Housing

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Home ownership across Australia is projected to fall despite the possibility of increased affordability brought on by the Covid-19 health and economic crises, a new paper by research body AHURI says.</p><p>The report, released on Thursday, reveals how Australia’s overall home ownership rate is projected to decline from 67 per cent to around 63 per cent by 2040, and notably to 51 per cent for those in the 25–55 age bracket, down from 60 per cent in 1981.</p><p>The research, undertaken by Swinburne University of Technology, suggests that the continued retreat in home ownership has been brought about by complex shifts through the entire institutional environment—rather than a single policy failure, political decision or market failure.</p><p>“Broadly, Australia now has an institutional environment which no longer supports ownership as it did in the past,” Swinburne University of Technology professor Terry Burke said.</p><p>“A housing system in which one half—predominantly older homeowners—acquires wealth and the other half—generally younger renters—doesn’t, is a recipe for long-term social problems.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4cb5be3a-20bd-4e41-bcbd-f3fb3f13c9de.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ According to the ATO, more than two million, or one-in-12, Australians own an investment property, with almost 30 percent of those owning two or more.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>In the context of the current crisis, events such as the global financial crisis which produced major falls in dwelling prices, did not create a return to ownership. </p><p>This was due to fiscal austerity, a lack of finance, weakened household income, and purchasers being outstripped by investors.</p><p>Looking ahead, AHURI pointed to the diminishing labour market, issues around affordability and the supported growth of the private rental sector—underpinned by favourable tax provisions, for the impending declines in ownership.</p><p>“Either we embrace fundamental and broad-based reforms to rebuild ownership or we accept a retreat from its historical dominance, moving to a system which has more balance between rental and ownership—what we can call a dual tenure system,” Burke said.</p><p>“The change has come from complex shifts throughout the entire institutional environment.”</p><p>AHURI&#x27;s projected declines mean Australia will no longer be a near “universal ownership society”, but must become a dual tenure society of ownership and rental.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Changes in ownership by percentage points, 1954–2016</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/48426ec7-e2d5-42be-ab51-ca33b2c6b576.png" width="1600"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^ Source: Original analysis of ABS Census of Population and Housing data, various years.</sub></sup></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Twenty years ago only about quarter of Australian households rented.</p><p>While those renting, as a proportion of all households, has significantly risen, the proportion of public housing tenants has halved from 6 per cent to 3 per cent of the population.</p><p>Housing costs, adjusted for inflation, have continued to increase for home owners without a mortgage, with analysts suggesting that the “demand for bigger homes” was part of the reason for rising costs.</p><p>Sydney, Melbourne and Hobart continue to be some of the most unaffordable property markets on the planet, having seen housing values <a href="https://theurbandeveloper.com/articles/house-prices-keep-on-ticking-despite-crisis">rise</a> at a faster rate than household incomes over the last decade, which has continued to erode affordability. </p><p>The report said that despite the challenges of Australia’s changed institutional environment since the late 1970s the overall home ownership rate has held up well, sitting at 67 per cent in 2016.</p><p>“The current seemingly high rates of home ownership in Australia are masking a long-term problem of serious housing inequality between older and younger generations and between wealthier and poorer households,” Burke said.</p><p>“The financialisaton of housing is an international factor and is best understood as the process where housing is treated as a commodity to be invested in rather than a home, meaning more and more money flows into housing but without any necessary improvement in housing supply or quality.”</p></div></div></div></div></div>

Home ownership across Australia is projected to fall despite the possibility of increased affordability brought on by the Covid-19 crisis.

b7171d2f-75c4-429f-8a62-27b0de51a3e3

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Not long ago Australia’s housing boom was in full swing. Investors were betting on rising property values, which rose by 13 per cent in Sydney and 15 per cent in Melbourne in the year to mid-2017. </strong></p><p>Now the withdrawal of overseas buyers and prudential restrictions on loose lending to local investors have revealed how hollow the boom was.</p><p>Throughout the boom, politicians and property pundits consistently claimed the supply being delivered would improve affordability. </p><p>As we are now seeing, when the price a property can fetch drops, so too does the desire to build it. It was rampant price growth that underpinned developers’ pleas to add supply, <a href="https://www.linkedin.com/pulse/opinion-housing-need-cannot-fully-met-market-tim-williams/">not a desire to make housing more affordable</a>.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em>Read more: </em><a href="https://theconversation.com/affordable-housing-policy-failure-still-being-fuelled-by-flawed-analysis-92993"><em>Affordable housing policy failure still being fuelled by flawed analysis</em></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>We are now seeing rapid declines in approvals and building starts as speculative investor demand, and the money it brought to the market, has fallen away.</p><p>Ironically, <a href="https://theconversation.com/why-falling-house-prices-do-less-to-improve-affordability-than-you-might-think-111267">falling prices will not improve affordability</a> for people locked out of the market. Banks are tightening lending practices and stagnant wage growth limits the <a href="https://www.afr.com/real-estate/rental-affordability-worse-for-lowpaid-workers-and-negative-gearing-is-to-blame-20181128-h18fya">buying capacity of those trapped in the low-income economy</a>. </p><p>True, falling prices are welcome for some first home buyers who now find a purchase possible. But the rapid inflation of house prices long ago far outstripped the capacity of most lower-income households to buy a home.</p><p>Our analysis for the <a href="https://cityfutures.be.unsw.edu.au/research/projects/filling-the-gap/">NSW Community Housing Industry Association (CHIA NSW) and Homelessness NSW</a>, building on recent <a href="https://www.ahuri.edu.au/research/final-reports/306">AHURI research</a>, shows that the market cannot meet around 12 per cent of all households’ needs. </p><p>Only one-third of those are housed outside the market in public or community housing. The rest are in overcrowded homes, rental stress or even homeless.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em>Read more: </em><a href="https://theconversation.com/why-falling-house-prices-do-less-to-improve-affordability-than-you-might-think-111267"><em>Why falling house prices do less to improve affordability than you might think</em></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>In the face of a housing market downturn, those same property pundits are now <a href="https://www.smh.com.au/money/investing/why-labor-s-housing-policy-is-self-defeating-fraught-with-peril-20190228-p510u8.html">sternly warning against action</a> that would further dampen speculative investment in housing. However, this is precisely the moment to tackle the problems that have been building over many years and to set the dynamics of the housing system on a more affordable track.</p><p>Winding back speculative activity by cutting negative gearing and capital gains tax discounts, cracking down on inappropriate lending practices, and increasing regulation on unacceptable building practices should all be followed through in earnest across all levels of government.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em>Read more: </em><a href="http://theconversation.com/vital-signs-why-now-is-the-right-time-to-clamp-down-on-negative-gearing-107370"><em>Vital Signs: why now is the right time to clamp down on negative gearing</em></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Delivering the housing we need</strong></h2><p>The bigger question that remains then is: what is the future of the housing supply system across Australia?</p><p>History has shown us private sector investment alone cannot provide the needed housing, especially for the most vulnerable. Neither can it produce consistent supply through its boom-and-bust cycles. </p><p>So now is also the moment for a renewed conversation about how to deliver the housing that’s most needed, and who ought to do it, especially for <a href="https://theconversation.com/housing-costs-are-actually-the-same-as-in-1993-but-renters-still-struggle-95286">those facing chronic rental stress</a>.</p><p>Markets have never delivered housing affordable to those on low incomes without subsidy from governments. In fact, a mountain of subsidies and tax breaks have been thrown at the private market to support such an aim. These range from <a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance">Commonwealth Rent Assistance </a>to support private rental and grants to first time buyers, to negative gearing and capital gains tax relief for investors and home owners, but have had no discernible effect on affordability.</p><p>Faith in the markets has prevailed for the past 30 years. As a result, alternatives have been ruled out of play.</p><p>To cover the backlog of unmet need and future need, <a href="https://cityfutures.be.unsw.edu.au/research/projects/filling-the-gap/">our new research commissioned by CHIA NSW and Homelessness NSW</a>  predicts that, over the next 20 years, two in ten new homes would need to be for social housing and a further one in ten for affordable housing. </p><p>Just shifting this third of construction to not-for-profit housing providers, either the community sector or government, would reduce delivery costs – by losing the 20 per cent developer markup at a stroke.</p><p>More broadly, the funds needed to support a sustainable affordable housing program could easily be offset by the savings from scrapping current inefficient and inflationary tax subsidises to private investors.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em>Read more: </em><a href="https://theurbandeveloper.com/articles/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it"><em>Australia needs to triple its social housing by 2036. This is the best way to do it</em></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The challenge of such a task cannot be underestimated. Yet this presents a considerable opportunity to resolve a range of interrelated problems with how housing is provided in Australia.</p><p>Here are four of the biggest.</p><h2><strong>1. Stabilise the construction labour market</strong></h2><p>Social and affordable housing development would underwrite the construction industry with a steady stream of funding for building homes over the long term. Building industries mobilise considerable workforces. Stable streams of work would smooth out the dramatic drop in employment that comes with housing downturns.</p><p><a href="https://theurbandeveloper.com/articles/building-construction-shrinking-at-a-concerning-rate-">Recent reports</a> have noted the accelerated decline in the construction industry. <a href="https://www.smh.com.au/business/the-economy/house-price-falls-are-not-the-economy-s-biggest-worry-20190227-p510gk.html">The Reserve Bank</a> is warning that shocks to wages and employment present a threat to the economy.</p><h2><strong>2. Support planning for a predictable supply</strong></h2><p>The planning system would benefit from having a large portion of projected housing needs met and supplied more predictably. </p><p>The uncertainty of boom-bust housing cycles makes it near impossible to plan sensibly for population growth and implement strategic planning objectives across our cities and regions.</p><p>Planning for major infrastructure, such as hospitals, schools and transport, relies on new housing arriving in a timely manner. <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/Understanding-inclusionary-zoning">Blanket inclusionary zoning</a> policies and discounted public land sales to support land supply for affordable homes need to be prerequisites.</p><h2><strong>3. The benefit of investing in affordable housing</strong></h2><p>If government spending on housing can be invested in the assets themselves (for example, through an equity share in the development), the expenditure will be retained both for an enduring social purpose and as a positive contribution to the accumulated asset base of government.</p><p>A properly designed, large-scale, not-for-profit program could mean investing in new housing becomes a positive for state and national balance sheets. This requires a shift in behaviour and mindsets of some Treasury officials who often see social housing as a liability.</p><h2><strong>4. Drive broad productivity dividends</strong></h2><p><a href="https://cityfutures.be.unsw.edu.au/research/projects/strengthening-economic-cases-housing-productivity-gains-better-housing-outcomes/">Other recent research for CHIA NSW</a> shows investment in suitably located social and affordable housing has much wider economic benefits. </p><p>These include travel time savings for lower-income workers currently pushed into the outer suburbs, as well as human capital uplift resulting from long-term positive impacts on household incomes.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em>Read more: </em><a href="https://theconversation.com/key-workers-like-nurses-and-teachers-are-being-squeezed-out-of-sydney-this-is-what-we-can-do-about-it-91476"><em>Key workers like nurses and teachers are being squeezed out of Sydney. This is what we can do about it</em></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Similarly, <a href="https://www.ahuri.edu.au/research/final-reports/265">government budgets benefit from reducing demand on social services</a>.</p><p>In short, the evidence-based economic case for government investment in social and affordable housing is strong. Given the impending fallout of a property bust following the largest property boom in Australian history, now is the time to act and reshape the nation’s housing system for the long term.</p><p>But do we have governments capable of conceiving of the necessary policy shifts or with the courage to enact them? Time, and the next election, will tell.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Authors</strong></p><p>Laurence Troy, Research Fellow, City Futures Research Centre, UNSW</p><p>Bill Randolph, Director, City Futures Research Centre, Faculty of the Built Environment, UNSW</p><p>Ryan van den Nouwelant, Lecturer in Urban Management and Planning, Western Sydney University.</p><p>This article is republished from <em>The Conversation</em> under a Creative Commons license. Read the <a href="https://theconversation.com/build-social-and-affordable-housing-to-get-us-off-the-boom-and-bust-roller-coaster-113113">original article</a>.</p></div></div></div></div></div>

Not long ago Australia’s housing boom was in full swing. Investors were betting on rising property values, which rose by 13 per cent in Sydney...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>With property prices on course to lift to <a href="https://theurbandeveloper.com/articles/how-long-until-housing-values-reach-a-new-record-high">record highs</a> in the first half of 2020, <a href="https://theurbandeveloper.com/articles/investors-first-home-buyers-drive-12pc-rebound-in-lending">first-time buyers</a> and those <a href="https://theurbandeveloper.com/articles/buyers-back-in-the-market-as-auctions-rebound">re-entering the market</a> could soon be priced-out, further eroding any renewed prospects of housing affordability. </p><p>After almost two years of falling prices of between 10 and 15 per cent in Sydney and Melbourne, the housing market is showing signs of <a href="https://theurbandeveloper.com/articles/house-prices-make-biggest-jump-in-4-years">bouncing back</a> driven by a number of factors including <a href="https://theurbandeveloper.com/articles/075-is-a-record-low-but-dont-think-for-a-second-the-reserve-bank-as-finished-cutting-the-cash-rate">record low interest rates</a>, easier access to credit and more certainty around tax arrangements.</p><p>Housing affordability enjoyed temporary relief over the downturn, seeing an 8.4 per cent fall in prices with dwelling values 6.5 times higher than gross annual household incomes as of June, the lowest level since December 2013.</p><p>According to the latest ANZ-CoreLogic Housing Affordability report, the 8.4 per cent falls in real estate prices nationally—seen over the past two years, has now significantly reversed, with prices in Melbourne and Sydney <a href="https://theurbandeveloper.com/articles/is-the-downturn-over-house-prices-begin-to-rise">rising</a> 6 per cent and 5.3 per cent respectively since May.</p><p>Dwelling values are now outpacing household incomes across all capital cities (with the exception of Perth and Darwin) with over-extended household debt and rising mortgage rates reversing affordability and playing a larger role influencing the broader economy.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/f9d6ab98-1e72-4824-a0a5-7fed211505a6.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Affordability is influenced by interest rates, the size and term of loan repayments, and household income. Image: AAP</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“We see more urgency coming back into the market and if this trend continues, we could see property prices reach new highs early next year,” Corelogic head of research Tim Lawless said.</p><p>“We have also seen an increase in the number of areas where it is cheaper to buy than rent, which can be attributed to the lowest interest rates since the 1950s together with lower housing prices relative to the market peak.”</p><p>The downturn has seen the number of years to save for a deposit decline drastically, back to 2014 levels, across the country.</p><p>Households are now also dedicating the smallest proportion of their incomes towards paying a new mortgage since early 2004 and renters are spending the lowest proportion of their income on accommodation since 2007.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Housing affordability in numbers</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sub>• 8.6 years - the time it takes a typical household to save 20 per cent deposit for a dwelling based on saving 15 per cent of their gross annual income<br>• 34.4 per cent - the proportion of income needed to repay a 80 per cent loan to value ratio mortgage as of June 2019, the lowest it has been since 2004<br>• 28.5 per cent - the average percentage of household income required to rent a house as of June 2019</sub></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>With prices likely to continue their upward trajectory on the back of the latest rate cut, an increasing number of Australians have little to be excited about.</p><p>The latest wages growth figures released last week by the ABS also has revealed that growth has distinctly slowed, with the worst results since the middle of last year, lifting by just 0.5 per cent.</p><p>Earnings are believed to be on course to grow by just 2.2 per cent for the year and economists expect that number to fall further as unemployment ticks up.</p><p>The ratio of household debt to disposable income is about 190 per cent, according to Reserve Bank calculations, compared to 70 per cent at the beginning of the 1990s that then rose to 160 per cent at the time of the GFC.</p><p>Sydney remains the least affordable market for buyers, followed by Melbourne.</p><p>Last month, the Morrison government has announced further details of its <a href="https://theurbandeveloper.com/articles/first-home-buyers-scheme">first-homebuyer deposit</a> election promise that stands to benefit up to 10,000 Australians each year and is set to kick off from January next year.</p><p>In an attempt to reboot housing sentiment, the government announced price caps for support through the scheme, which is $700,000 for a house in Sydney and $600,000 in Melbourne.</p><p>First homebuyers will only have to save 5 per cent of a deposit under the plan, with the federal government to guarantee the difference of a standard down payment.</p></div></div></div></div></div>

First-time buyers and those re-entering the market could soon be priced-out.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Australia’s moderating housing market has failed to make a meaningful dent in housing affordability, with all five of Australia’s major housing markets ranking as “severely unaffordable” in 2018.</strong></p><p>Despite some of the <a href="https://theurbandeveloper.com/articles/house-price-decline-largest-since-the-80s-morgan-stanley">largest house prices falls in 35 years</a>, Australian house prices relative to incomes are more than double the rate of the early ’80s, with no “affordable” markets. </p><p>The results, reported in Demographia’s annual international housing affordability survey, show some movement <a href="https://theurbandeveloper.com/articles/australia-ranked-third-least-affordable-housing-market-globally-">from last year</a> with Vancouver displacing Sydney as the world’s second least affordable market. </p><p>Only Hong Kong is less affordable, ranking number one for the ninth consecutive year. </p><p>The survey, in its 15th year, covers 209 metropolitan housing markets and rates middle-income housing affordability using the “median multiple” – the median house price divided by median household income. </p><p>A rank of 3 and under is classified as “affordable”, while 3.1-4 is “moderately unaffordable”, 4.1-5.0 “seriously unaffordable” and anything classified as 5.1 and over is characterised as “severely unaffordable”. </p><p>Related: <a href="https://theurbandeveloper.com/articles/house-price-decline-largest-since-the-80s-morgan-stanley">House Price Decline Largest Since the ’80s: Morgan Stanley</a></p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/3cda766d-3771-49da-98b3-4c93fc6829db.png" width="610"/></picture><div><span style="align-content:center;opacity:0.8">Australia&#x27;s major housing market median multiple is a severely unaffordable 6.9. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>With a median multiple of 11.7, a buyer in Sydney would need to save for almost 12 years to buy a house. </p><p>Melbourne remains the fourth least affordable market, with an average decade-long wait to buy a home. </p><p>Adelaide comes in at 16th of the 91 major markets, while Brisbane is ranked 18th least affordable with a median multiple of 6.3. </p><p>Perth is the 24th least affordable market in this year’s survey. </p><p>The report blames the implementation of urban containment, or “urban consolidation”, policies which limit new housing development in the fringe areas of cities. </p><p>“Australia’s generally unfavourable housing affordability is in significant contrast to the broad affordability that existed before implementation of urban containment,” report authors Wendell Cox and Hugh Pavletich said. </p><p>“The price-to-income ratio in Australia was below 3.0 in the late 1980s. </p><p>“All of Australia’s major markets have urban containment policy and all have severely unaffordable housing.”</p><p>As for market commentary, the report quoted the 2018 OECD economic survey of Australia describing its housing market as a “source of vulnerability”.</p><p>“Prices have more than doubled in real terms since the early 2000s and household debt has surged. </p><p>“So far, data point to a soft landing without substantial consequence for the overall economy. </p><p>“Nevertheless, risk of a hard landing remains.”</p></div></div></div></div></div>

Australia’s moderating housing market has failed to make a meaningful dent in housing affordability.

Rental Affordability at Best Level Since 2007

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Rental affordability has improved to its best result in more than a decade, driven by coronavirus-induced rent reductions, according to the latest quarterly report from the Real Estate Institute of Australia.</p><p>Most states and territories saw improvements in rental affordability during the June quarter, with only the Australian Capital Territory having experienced an increase in rents.</p><p>The proportion of income required to meet rent payments decreased to 23.3 per cent in the quarter, a decrease of 0.4 percentage points over the quarter and down 0.5 percentage points compared to the same time last year, analysis reveals.</p><p>“Rental affordability has not been this high since December 2007, a positive for renters in these Covid times,” REIA president Adrian Kelly told <em>The Urban Developer</em>.</p><p>“Even though the family income only increased 0.1 percentage point during the period, the average loan repayment decreased 0.6 percentage points through a drop in the average variable standard interest rate.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4d8c602c-db71-4190-872f-c1b2e5825085.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ While interest rates remain low enough for many properties to be cash-flow neutral, a significant fall in rents over the coming months, may force investors to offload properties.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Since the closure of Australia’s international borders in March, <a href="https://theurbandeveloper.com/articles/as-demand-for-crisis-housing-soars-surely-we-can-tap-into-covid-19-vacancies">soaring vacancies</a> and widespread <a href="https://theurbandeveloper.com/articles/rental-vacancy-rates-sqm-melbourne">rental discounting</a> has placed downward pressure on rents.</p><p>The rental market has also been <a href="https://theurbandeveloper.com/articles/surprise-fall-in-residential-vacancy-rates">awash</a> with Airbnb listings as a result of the travel ban, while online-only learning has pushed thousands of students to forgo rental accommodation and return home.</p><p>Inner-city markets in Sydney and Melbourne have been the most heavily affected due to the service economy downturn, as people working in industries hardest hit by Covid-19 were also most likely to rent.</p><p>New South Wales saw median rents remain stable across the June quarter at 27.5 per cent of income, the nation’s highest, but decreasing 0.5 percentage points compared with the corresponding quarter 2019.</p><p>In Victoria, where a rise in unemployment, job uncertainty and a fall in consumer confidence continues in the wake of a second lockdown, the proportion of income required to meet median rent decreased to 22.5 per cent—a decrease of 0.5 percentage points both over the quarter and the previous year.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Proportion of family income needed to meet rent</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Year</th><th>Jun qtr 2020</th><th>Mar qtr 2020</th><th>Jun qtr 2019</th></tr></thead><tbody><tr><th>NSW</th><th>27.5%</th><th>27.5%</th><th>28.0%</th></tr><tr><th>VIC</th><th>22.5%</th><th>23.0%</th><th>23.0%</th></tr><tr><th>QLD</th><th>21.5%</th><th>22.0%</th><th>21.9%</th></tr><tr><th>SA</th><th>21.5%</th><th>22.5%</th><th>22.0%</th></tr><tr><th>WA</th><th>16.1%</th><th>16.6%</th><th>16.4%</th></tr><tr><th>TAS</th><th>28.5%</th><th>30.5%</th><th>29.9%</th></tr><tr><th>NT</th><th>20.2%</th><th>20.6%</th><th>20.2%</th></tr><tr><th>ACT</th><th>19.2%</th><th>19.0%</th><th>18.9%</th></tr><tr><th>National</th><th>23.3%</th><th>23.7%</th><th>23.8%</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^ Source: Real Estate Institute of Australia</sub></sup></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The proportion of income required to meet rent also declined in South Australia, Western Australia, Tasmania and Queensland. </p><p>The ACT was the only state to record an increase in the proportion of income required to meet the median rent, lifting to 19.2 per cent—an increase of 0.2 percentage points over the quarter—supported by the high proportion of government workers.</p><p>“It is likely that pressure will continue to be placed on rental returns over the next six to nine months, but the good thing about this pandemic is that we know it will come to an end,” Kelly said.</p><p>“The pressure on rents is intrinsically connected to employment, and we will see pressure rise in the short-term as government assistance is wound back, but thankfully the high levels of unemployment that were touted hasn’t happened.</p><p>“Once the pandemic is under control, domestic tourism will have a big part to play in employment returning to healthier levels which in turn will stabilise the markets.”</p><p>Separate figures from Corelogic painted a <a href="https://theurbandeveloper.com/articles/australian-housing-values-reveal-divergent-capital-city-regional-markets">similar picture</a>, reporting a fall in capital city rents of 0.7 per cent over the June quarter, while regional rental prices lifted by 0.2 per cent.</p><p>Corelogic found that the Hobart rental market experienced the largest value falls in the June quarter at 2.3 per cent, followed by Sydney at 1.3 per cent which remained the more expensive in terms of median asking rents, at $568 per week.</p></div></div></div></div></div>

Rental affordability has improved to its best in more than a decade, driven by coronavirus-induced rent reductions.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Victoria’s largest youth homeless service provider has been transformed into a four-storey building with two floors of new crisis accommodation aimed at supporting Melbourne’s most vulnerable and disadvantaged youth. </p><p>In a coordinated approach through the Property Industry Foundation, property professionals have helped complete the $9 million redevelopment of <a href="https://theurbandeveloper.com/articles/when-property-meets-philanthropic-construction-starts-on-8m-fender-katsalidis-development-for-homeless-youth">Melbourne City Mission’s Frontyard Youth Refuge</a> at 19 King Street.</p><p>The redevelopment is the first in Australia to combine crisis accommodation with multiple support services available 24 hours, seven days a week. </p><p>More than $1.5 million in services have been donated pro-bono to the Frontyard redevelopment by a consortium of property industry consultants. </p><p>With the pro-bono team including Ashurst, Case Meallin, Slattery, Fender Katsalidis, Norman Disney Young, Built, Hendry Group, Equitable Access Solutions, Irwinconsult, Wood and Grieve Engineers and Urbis.</p><p>Related: <a href="https://theurbandeveloper.com/articles/developers-beyond-property-soheil-abedian-on-urban-legacy">Developers Beyond Property: Soheil Abedian on Urban Legacy</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/95caf77c-0ae3-4477-a74a-6d376afadfa6.jpg" width="2744"/></picture><div><span style="align-content:center;opacity:0.8">The redevelopment of 19 King Street.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Property Industry Foundation Victoria chairman Peter Inge says the project is dedicated to supporting the most severely marginalised and disadvantaged youth in Melbourne. </p><p>“Our committed team of pro-bono consultants from some of the largest players in the industry have worked tirelessly to deliver this project on time and on budget,” Inge said. </p><p>“It’s encouraging to see the property industry donate their time and expertise to a physical facility that will assist at risk and homeless young people.”</p><p>Related: <a href="https://theurbandeveloper.com/articles/homelessness-soars-in-our-biggest-cities-driven-by-rising-inequality-since-2001">Homelessness Soars in Our Biggest Cities, Driven by Rising Inequality Since 2001</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4e873a00-afa8-4f4a-a27c-a8142918b612.jpg" width="2744"/></picture><div><span style="align-content:center;opacity:0.8">Internal living space at 19 King Street. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br><strong>Empowering</strong> <strong>marginalised youth</strong></p><p>Melbourne lord mayor Sally Capp says homelessness is one of the biggest issues facing the city. </p><p>The latest <a href="https://theurbandeveloper.com/articles/homelessness-soars-in-our-biggest-cities-driven-by-rising-inequality-since-2001">AHURI research</a> shows homelessness is becoming more concentrated in major cities, increasing from 48 per cent to 63 per cent of all homeless people between 2001 and 2016, with the rise most acute in capital city areas specifically Sydney, Hobart and Melbourne.</p><p>Across Australia, one in 200 people are homeless and 38 per cent are under 25 years old, with 44,000 young people sleeping on the streets each night. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/ba9a78cb-869a-487a-98dd-71a2fffb188d.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">Australian Bureau of Statistics estimate that up to 44,000 homeless are under 25.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Melbourne City Mission chief Vicki Sutton said the integrated service is focused on meeting the needs of some of Melbourne’s most marginalised.</p><p>“Young people with complex needs who are currently falling through the cracks of siloed service systems,” Sutton said.</p><p>“Without appropriate interventions, young people can become further entrenched in long-term homelessness and disadvantage. </p><p>“The pioneering Frontyard model aims to break this cycle by supporting young people to create a future where they can experience all the benefits of life we often take for granted.” </p><p>Through the property industry foundation a consortium of suppliers have also donated their services and resources to the Frontyard development project, including Harvey Norman, Highbury Plumbing, Haydens Ceiling and Partitions, Signorino Tiles, Taubmans Paint, Apec, AMP and AGL Energy.</p></div></div></div></div></div>

More than $1.5 million in services have been donated pro-bono to the Frontyard redevelopment by a consortium of property industry consultants. 

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p>The construction of 30,000 social housing dwellings to reduce homelessness and generate jobs has been put forward as one of the strategies towards economic recovery post Covid-19.</p><p>Australian Council of Social Services says coronavirus related restriction measures have exposed the scale of homelessness and rough sleeping in Australia, as both social and health problems. </p><p>As part of its five <a href="https://www.acoss.org.au/media-releases/?media_release=acoss-recovery-proposals-for-job-creation-and-poverty-reduction">proposals</a> towards economic recovery post Covid-19, the peak body for the community services sector advocates a $7 billion public investment to construct 30,000 social housing dwellings. </p><p>“The ‘pipeline’ of residential construction projects from investments undertaken during the housing boom is declining,” ACOSS chief executive Cassandra Goldie said.</p><p>“This means skilled labour and materials are more likely to be available for social housing construction.</p><p>“We can create thousands of jobs and reduce homelessness through a public infrastructure program to build social housing.”</p><p>As state governments are beginning to take their first steps towards easing some of Covid-19 restrictions, the construction and property sectors have been earmarked as central to progressing Australia’s economic recovery.</p><p>It was<a href="https://theurbandeveloper.com/articles/shovel-ready-projects-kick-start-planning-reform-"> revealed </a>on Tuesday the New South Wales government is considering more than $500 million in social housing stimulus, as it announced it would <a href="https://theurbandeveloper.com/articles/shovel-ready-projects-kick-start-planning-reform-">fast-track</a> 24 shovel ready projects in a $7.5 billion economic injection. </p><p>The $500 million stimulus spend would help address the state’s housing issues, issues that existed before the pandemic. </p><p>This includes a shortfall of 200,000 social and affordable homes and more than 60,000 households on the social housing waitlist.</p><p>Community Housing Industry Association NSW Mark Degotardi says the $500 million plan, from the Land and Housing Corporation, would address “years of underspending” on social housing in the state. </p><p>The Grattan Institute<a href="https://theurbandeveloper.com/articles/charts-show-coronavirus-pushing-up-to-a-quarter-of-the-workforce-out-of-work"> estimates</a> that up to 26 per cent of employees would have lost their jobs by the end of June as a restult of Covid-19 related restriction measures. </p><p>Federal Treasury estimates unemployment could reach 10 per cent by June, although if businesses are able to retain employees on lower hours, RBA governor Philip Lowe said he is “<a href="https://theurbandeveloper.com/articles/coronavirus-employment-shock-34m-housing-market">hopeful</a> it might be lower than this”.</p><p>The Grattan research shows the impact of Covid-19 is felt disproportionately on lower income earners, on those who will struggle to re-establish their careers and incomes as the economy recovers, largely people in low-paid and insecure jobs, “mainly young people and women, of whom around a third are expected to lose their jobs”. </p></div></div></div>

The construction of 30,000 social housing dwellings to reduce homelessness and generate jobs has been put forward as one of the strategies towards eco

HOUSING AFFORDABILITY