- With prices high and supply low, Australia's housing landscape is under investigation
- Specifically housing affordability and supply are being examined
- Mr Jason Falinski MP is leading the committee
Housing affordability and supply in Australia is under investigation as an inquiry is launched by the House of Representatives Standing Committee on Tax and Revenue.
More specifically, the committee will look into the impact of tax and regulation on price, affordability, and supply of housing.
Chair of the Committee, Mr Jason Falinski MP, explained that “…homeownership, one of the building blocks of Australian society, has been falling for the last 30 years.“
Mr Falinski said this in light of data from the Reserve Bank of Australia (RBA), the Treasury and the Australian Bureau of Statistics (ABS).
“In my view, this represents an urgent moral call for action by governments of all levels to restore the Australian dream for this generation and the ones that follow.”
Jason Falinski MP
At the root of Australia’s dwelling shortage are restrictive planning laws and the ineffectiveness of subsidies and tax concession on housing, according to Mr Falinski.
Australia has a high inelasticity in housing, meaning increasing prices do not seem to dampen much of the demand. This has driven the ratio of housing prices to household income to all-time highs. According to the Organisation for Economic Co-operation and Development (OECD), this has exacerbated the price growth.
Shortfall
A deficiency in new dwellings being built has also contributed to the current shortage. The number of building approvals for residential private projects was 44% lower in the five years to 2020 than in the five years prior according to the ABS.
Australia-wide
Similarly, new home listings are down to record lows based on Core Logic’s most recent five-year average.
In this context of high prices and dwelling shortage that the committee is investigating Australia’s housing landscape.
Interested individuals and organisations are invited to provide submissions. The deadline for submissions is Monday 13 September 2021.
