Some Updates on Housing Affordability and Labor Policy
In recent years, one of the topics that is widely talked about is housing affordability. Last time, I wrote about what it means and why it’s become such a serious issue. This problem has reached so many countries, including Australia. Last year, a report was released that housing affordability has started improving, however, it’s the long-term view that’s in fact, struggling. Let’s take a look at the current condition and the trends that sprung out of this matter.
Just as I have previously talked about, the percentage of housing unaffordability increased rapidly. This happened because of the property price increase, which made it more difficult for buyers to purchase a residential property. Capital regions such as Sydney and Melbourne have proven how incredibly expensive it is now to buy your own house because of its influence over the country’s housing market.
Labor just released a $6.6bn housing affordability policy, which is expected to have a huge effect on the federal and states government. According to a study conducted by the McKell Institute, it’s supposed to help governments save over $10.8bn. Furthermore, moving a person from crisis accommodation could definitely help save the government over $11,935 annually due to the cost of health and security services. Last December, it was reported that Labor committed a total of $102m to build over 20,000 affordable homes for the next four years. This number will go on to produce about 250,000 homes in ten years.
In addition to incentives for the construction of affordable homes, Labor policy offers subsidies to investors that will build affordable houses. The subsidy is said to cost about $8,500 a year for 15 years. There will also be taxpayer support conditional to tenants at 20% below the rent of the market. According to the report, the construction of affordable homes will contribute to more positive effects on the nation’s economy. For instance, it is expected to generate over $40B of economic activity. Now you may ask, in what way? By creating over 18,000 more direct jobs and about 28,000 more indirect jobs. Mind you, this is on average for each year.
At the moment, rents in Sydney have started to fall. In Melbourne, the growth has slowed down. This indicates that house prices are cooling down. Unfortunately, it’s still not considered good news for those who are wanting to purchase their homes. Many find that it’s too expensive which would result in lifetime renting or worse, homelessness.
The new Labor policy aims to improve this situation as well as the health and economic condition. McKell Institute also adds that it would provide Australians “a greater sense of safety, independence, and social connectedness.” This move should inspire more investors to build more homes and hopefully will aid in decreasing the increasingly alarming percentage of people who are unable to find a decent and affordable home.
The national dream is to own a home, however, it’s considered much cheaper to rent than owning one, not just in Australia but also in different parts of the world. But the problem doesn’t stop there. Because of expensive property, many are finding themselves lacking in other options to find accommodation. Xotel is all about providing accommodation that is not just affordable, but safe and efficient. Whether you are an Australian who is saving up for a deposit, someone who is transitioning to interim housing or just an individual who wants to live within their means, Xotel could definitely be a solution for you.