General News
20 September, 2024
It's time to be reasonable about our housing crisis
Solutions to the housing crisis can't just be on the government.
Few issues are more central to the job of government than helping to provide a roof over the head of every person.
The question of how to house vast tracts of the underprivileged population has now been front and centre of Australian and social discourse for almost a full generation.
And the fact so many young Australians have accepted they may never own a home is one of the most intractable problems facing the government, whichever party is in power.
Prime Minister Anthony Albanese announced the first stage of funding for 757 homes in the ACT ahead of a Senate debate over his government's Help to Buy legislation - an initiative that's being blocked by the Coalition and the Greens, for more or less the same reason.
It can be frustrating to watch objections mount merely for the sake of opposition, especially for an issue that is crying out for some or any kind of forward motion.
As Prime Minister Anthony Albanese pointed out, the scheme is a step forward in the move to improve housing supply.
"We know this is the key to dealing with affordability issues when it comes to housing ... We need to build more homes more quickly in more parts of the country."
"This is about supporting home ownership in this country, and it's something that should, frankly, have sailed through the Parliament before now, were it not for the Coalition and the Greens."
Upon the announcement, Liberal Senator Anne Ruston dismissed the Housing Australia Future Fund as "a thinly veiled excuse to give institutional investors and super funds a leg up to invest in the housing market by purchasing homes for Australians to rent".
The Greens, meanwhile, have criticised, in particular, proposed build-to-rent schemes - multi-unit developments in which the residential dwellings are retained by one owner or entity and rented out long-term, rather than being sold.
Greens housing spokesperson Max Chandler-Mather said the scheme would "drive up rents and give tax breaks to property developers to build apartments that no one will be able to afford".
The Greens are instead demanding a coordinated freeze and cap on rent increases and reforms to negative gearing capital gains tax discounts for property investors.
While it's true that tax breaks for investors have made housing a wealth-generating asset, rather than something that should be affordable to all, it is disappointing that the more than $9 billion in funding in the middle of a housing crisis is being held up in the Senate due to politicking.
Greens say they are committed to more housing, but being too ideological and going after issues like negative gearing and capital gains tax concessions - both issues Labor tried and failed to change when Bill Shorten took proposals to an election - risks stalling much-needed construction.
Crashing the rental market by going too hard after the profits and incentives for investors will only make the problem worse, not better.
Landlords have a role to play in providing housing.
Solutions to the housing crisis can't just be shunted onto the government and taxpayers. An effective market that adds supply while encouraging investors to build more homes is an important part of the solution.