Can\u2019t afford a home? It\u2019s your own fault<\/a><\/p>\nIn a market where supply is already constrained, these approaches can have unintended consequences, pushing up prices or shifting pressure onto renters.<\/p>\n
![\"Treasurer](\"data:image\/svg+xml,%3Csvg)
<\/p>\n
Treasurer Jim Chalmers is being urged to focus on practical, evidence-based measures that align with how the housing market actually operates in this year\u2019s budget.<\/p>\n
The priority for the federal budget \u2013 which will be delivered by Treasurer Jim Chalmers on May 12 \u2013 should be to avoid making these pressures worse, while supporting a more functional housing system \u2013 one that makes better use of existing stock, protects rental supply, and improves the industry\u2019s ability to deliver new housing.<\/p>\n
The following priorities focus on practical, evidence-based measures that align with how the housing market actually operates.<\/p>\n
Don\u2019t worsen rental supply through tax changes<\/p>\n
Australia\u2019s rental market relies heavily on small, private investors, and there is no immediate alternative if that supply is reduced. When investor participation falls, rental supply contracts quickly \u2013 and that pressure shows up almost immediately in higher rents and reduced availability.<\/p>\n
<\/p>\n
Ray White chief economist Nerida Conisbee<\/p>\n
The key issue is that while policy can reduce investor activity quickly, it cannot replace that rental supply at the same pace.<\/p>\n
We don\u2019t have a backup system for rental housing \u2013 so policy needs to be careful not to reduce it further.<\/p>\n
Remove tax distortions that discourage downsizing<\/p>\n
A significant share of Australia\u2019s housing stock is under-utilised, with larger homes often occupied by smaller households. At the same time, younger families face constraints accessing appropriate housing.<\/p>\n
Part of this comes down to financial and tax settings that make it easier to stay in place than to move. This reduces turnover and limits how effectively existing housing is used.<\/p>\n
Improving mobility within the housing system \u2013 including through settings like the super scheme \u2013 can help unlock existing capacity without needing to build new homes.<\/p>\n
Avoid demand-side support in constrained markets<\/p>\n
Policies that increase purchasing power, such as first homebuyer incentives, tend to be capitalised into prices when supply is limited.<\/p>\n
This is particularly evident at the lower end of the market, where demand has been strongest and price growth has been most pronounced. <\/p>\n
<\/p>\n
Australia\u2019s is currently following short of its national housing target.<\/p>\n
While these policies can help some buyers in the short term, they ultimately make housing less affordable overall.<\/p>\n
In a supply-constrained market, increasing demand does not improve affordability \u2013 it pushes prices higher.<\/p>\n
Support construction capacity and productivity<\/p>\n
One of the key constraints right now is not just approvals \u2013 it\u2019s the ability to deliver housing at scale.<\/p>\n
Construction costs remain high, labour is constrained, and many projects are not proceeding because they are not financially viable. <\/p>\n
There are also inefficiencies in the system, including skilled workers who are ready to work but face delays due to slow skills recognition processes, and limited adoption of faster, lower-cost construction methods.<\/p>\n
If we want supply to respond, we need to ensure the industry has the capacity and productivity to actually build.<\/p>\n
The common thread across all of these is that housing outcomes are being driven by supply constraints. <\/p>\n
The budget should focus on expanding capacity and improving delivery \u2013 not just redistributing demand.<\/p>\n
\u2013 Nerida Conisbee is the Chief Economist for the Ray White Group <\/p>\n","protected":false},"excerpt":{"rendered":"As we approach this year\u2019s federal budget, the focus needs to be on policies that genuinely improve housing…\n","protected":false},"author":2,"featured_media":421406,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-421405","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/421405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=421405"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/421405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/421406"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=421405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=421405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=421405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}