Today’s announcement of $9.2 billion of investment in social and affordable housing across Commonwealth, State and Territory government, and the private and community housing sectors, was welcomed by the Urban Development Institute of Australia (UDIA).
This initial round of the Federal Government’s Housing Australia Future Fund (HAFF) and National Housing Accord programs promise to deliver 4,220 social and 9,522 affordable homes, including 1,267 homes for women and children escaping domestic violence and older women at risk of homelessness. The programs will provide an ongoing funding stream to build 40,000 social and affordable housing projects, with applications for round two opening in the next 6-months.
“UDIA is a champion for improving the diversity and supply of housing across the continuum from at-market to affordable, social and crisis housing. The funding announced today is a critical step in addressing the supply and affordability imbalances currently impacting Australians who urgently need a home,” said Col Dutton, UDIA National President.
It is no surprise that programs like the HAFF and the National Housing Accord are urgently needed to address a crucial part of the current housing crisis. It is only part of the puzzle, with the success of the housing Accord target depending on well-priced private housing for the lions share of supply.
Australia’s housing markets have been beset by a continuous undersupply for most of the past two decades, eroding development ready land pipelines, housing affordability and access to home ownership.
While the shortfall in new housing stems from multiple factors: shortages of development ready land, increasing materials & skilled labour costs, productivity challenges, planning delays, it is the combination of each issue that has contributed to fewer homes, driving up purchase prices and rents.
This has led to Australians forced to pay more for homes, or rent for longer at higher rates, with a growing number inevitably forced to seek government support or social housing. There simply isn’t enough capacity to meet existing housing demand.
“With 97% of the Accord Housing Target relying on private at-market housing, we need initiatives to boost median priced housing for middle Australia or the important work of the HAFF will be lost to ever diminishing housing at increasing prices.”
“UDIA and our industry look forward to seeing the timely implementation and outcome from this round of funding and we will continue to do our part so that together with government at all levels, we can find ways to enable more Australians to secure a home of their own,” said Col Dutton.
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Media Enquiries:
Deanna Lane | Director, National Media & Communications | 0416 295 898 | media@udia.com.au