Right-sizing incentives welcome but housing supply focus still required

[15 May 2022] The Property Council of Australia today welcomed the Federal Government’s plan to incentivise older Australians to “right-size” their homes, but continued to urge all governments to tackle housing supply to properly address growing affordability concerns.

Property Council Chief Executive Ken Morrison said helping older Australians find more suitable homes made sense, but housing supply remained a pressing need and more action was required by all governments on the issue.

“We know many older Australians face barriers to ‘right-sizing’ their housing and these announcements will help people move to a home or a purpose-built age-friendly community that serves their needs better,” Mr Morrison said.

“The measures would also free up larger housing for younger, growing families.

“The Property Council has long advanced solutions to encourage older Australians to right-size their housing and we welcome these Government announcements and the Opposition’s support for them,” he said.

The Property Council has once again called for more focus from policy makers – at all levels of government – on the need for solutions to Australia’s housing supply challenges.

“The Super Home Buyer Scheme is another demand-side measure supporting the worthy goal of home ownership, but the primary challenge is to provide the housing supply and choice our growing communities need,” he said.

“The Government’s own official forecasts predict that housing supply is set to drop by around 35 per cent right at the time population growth is resuming, with the National Housing Finance and Investment Corporation forecasting that by 2032 Australia will be 163,400 homes short of demand.

“Falling supply and growing demand is a dangerous position for housing affordability.

“While targeted demand-side policies to support aspiring homebuyers are welcome, a supply crunch is coming and this needs be the focus for whoever wins government next Saturday,” he said.

Recent research conducted for the Property Council showed 70 per cent of Australians now believe the great Australian dream of home ownership is out of reach for most people.

The research found that 73 per cent of voters said the Federal Government needed to work with the states to get more housing built where people need it.

It prompted the Property Council to launch the Our Dream campaign video, to draw attention to the issue.

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