Cutting red and green tape and increasing housing supply must be prioritised by political leaders to stem Australia’s housing affordability crisis.
According to today’s Sydney Morning Herald, two-thirds of young Australians are giving up on home ownership, and this is having a significant impact on the economy and social fabric of the nation.
This is a national tragedy.
To address this issue, the Family First Party believes that cutting red and green tape and increasing land supply and higher density living options must be urgently pursued by local and state governments.
Think tanks such as The Centre for Independent Studies have also argued in favour of these solutions in submissions to government inquiries over many years.
The solutions are not new and sadly neither is the lack of willingness to act.
The lack of affordable housing is a growing problem in Australia, with rising house prices and rents outpacing wage growth, particularly in urban areas.
According to the Sydney Morning Herald, the average home in Sydney now costs over a million dollars, and in Melbourne, it is over $800,000.
This has made it impossible for many young people to save up for a deposit and secure a mortgage, even with low-interest rates.
Additionally, a lack of affordable rental options has forced many young people to remain in the rental market, making it difficult to save for a deposit.
The impact of declining home ownership is significant, with many young people feeling squeezed out of the Australian dream of owning their own home.
The Sydney Morning Herald reports that this is having a significant impact on the economy, with young people delaying starting families, which is impacting the birth rate, and leading to a decline in household formation.
This is also impacting social mobility, as young people are finding it increasingly difficult to establish themselves financially and secure their future.
Sir Robert Menzies’ vision that all Australians should be able to afford a home must be revived.
In 1960, when he was Prime Minister, the median house price in Australia was around $7,400, while the average weekly earnings were around $51. This means it would have taken approximately 145 weeks (or 2.8 years) of the average income to purchase a house in 1960, according to a report by the Australian Institute of Family Studies (AIFS).
In contrast, in 2021, the median house price in Australia is around $950,000, while the average weekly earnings are around $1,755. This means it would take approximately 541 weeks (or 10.4 years) of the average income to purchase a house in Australia.
By cutting red and green tape, we can reduce the cost of housing by simplifying the planning process and removing unnecessary regulations. This will make it easier for developers to build new homes and increase the supply of housing, making it more affordable for young people.
Higher density living options, such as townhouses and apartments, can also help to increase the supply of housing in urban areas where land is limited.
The Family First Party will campaign for affordable housing for young people and work to ensure that all Australians have the opportunity to own their own home.
This will help to boost social mobility, encourage family formation, and provide young people with the security they need to plan for their future.