This article is from the Australian Property Journal archive
EXPERTS agree that Australian governments haven’t paid enough attention to how housing impacts productivity and growth.
This was found in a new study by the UNSW City Futures Centre and commissioned by the Housing Productivity Research Consortium surveyed 47 leading economists and 40 senior experts from government, industry and academia.
84% of survey respondents agreed with the statement “Australian governments have paid too little attention to how housing outcomes also affect productivity and growth.”
“The vast bulk of housing experts and economists surveyed are concerned that ongoing Treasury dependence on ‘cheap money’ policy will further ratchet up house prices and widen the gap between rich and poor,” said Professor Bill Randolph from UNSW City Futures Research Centre, on behalf of the research team.
“From a purely economic perspective, the informed expert view is that this will undermine productivity and economic growth.”
80% of respondents felt that rising mortgage debt poses a risk to Australia’s economic stability, with only 12% believing that over-expensive housing for low-income renters has little impact on Australia’s economic productivity.
“Among the best ways to broaden Australia’s economic recovery strategy would be a large-scale national social housing program. Minimal construction for most of the past 25 years means that national social housing supply has effectively halved since the 1990s,” said Randolph.
Those surveyed agreed with this, with almost 70% believing that investment in social/affordable housing in preferable to investment in private housing, as the country recovers from the global pandemic.
Whereas, only 10% or respondents agreeing with the government’s decision to exclude social housing investment from its recovery stimulus package.
“A seven billion dollar investment in social and affordable housing would unlock more than $18 billion in economic expansion, creating more than 18,000 jobs a year over four years, and making a serious dent in homelessness,” said Kate Colvin, national spokesperson for Everybody’s Home.
Over the last 12 months public housing waiting lists have grown 4%, with high need applications increasing by 11%.
“Longer term this would also boost productivity, by allowing people better access to jobs. Social housing can lift people out of poverty and put them on a path to prosperity,” said Colvin.
According to Everybody’s Home, a national campaign to end homelessness, government investment in social and affordable housing would produce a strong social and economic dividend.
“A better-balanced housing system is the right thing to do. It also happens to be the smart thing to do,” concluded Colvin.