Housing the nation and why it’s a problem
A place to live is not just a privilege—it is a right. Unfortunately, certain factors have made it difficult for some people to find a decent home. Housing supply is one of the biggest issues Australia is facing right now. We have constantly reiterated that the problem is not so simple anymore. It has become bigger and needs attention, and more importantly, an action.
According to various researches, keeping up with the demand in housing is not the only struggle major cities are facing. There is an even bigger problem than that.
In theory, more housing stock should be able to accommodate the increase in population so homelessness should not be a major issue. Recent reports suggest that major cities like Sydney and Melbourne have improved when it comes to the housing supply; the building and construction industry is the biggest in the country as well. So why is housing Australians a problem if there are enough dwellings built?
Several factors are affecting the housing supply in Australia. Here are the two that make the biggest impact.
as we have mentioned many times before, housing affordability or housing unaffordability is currently the number one reason why housing the nation seems to be incredibly problematic. While there are enough dwellings for the population, the sustained levels of homelessness have a lot to do with the fact that not everyone can afford to buy a house or even rent a place.
In major cities like Sydney and Melbourne, it is not shocking to find out that residential properties are expensive. However, over the past few years, the prices have skyrocketed making it even more difficult for Australians to purchase their property.
Property Market Conditions
Recently, a report about Australian dwellings was released. According to Macrobusiness, “while the housing market has hit oversupply as the plethora of homes are completed, the collapse in dwelling approvals and commencements suggests that construction will bust later this year and into 2020. This will likely lead to heavy construction job losses, as well as tightening rental vacancies into 2020.”
Taking this into account it is more than likely that rental rates will go higher in the next few years. For those who already find the housing prices too expensive, thus, resorted to renting should anticipate the changes that would most likely take place.
Property market conditions play a huge role in wages. We have previously talked about wage stagnation and how much it affects individuals the ability to purchase a property. Wage stagnation is one of the biggest reasons why the rate of homelessness began to rise. The fact that property and rental prices increase while wages remain the same—you can only imagine the stress of making ends meet.
It is true Australia is facing a huge problem housing the nation, which is why it’s important to find alternatives to solve the homelessness problem. Xotel will continue to partner with organizations and the government to provide affordable accommodation to individuals who simply want to experience safe, and comfortable home.