All the core problems confronting the housing market can be blamed on politicians. Whether it’s the affordability issue, the rental shortage or builders going broke amid a construction boom, the short-sighted decisions of politicians are the underlying cause.
The previous Federal Government provided grants to encourage new home building but failed to consider whether there would be sufficient supplies of materials and tradespeople. The shortages that resulted have caused building costs to soar, sending many builders to the wall.
There are other reasons the cost of new homes is high. The cost of a new house-and-land package is loaded with taxes, fees and levies from all levels of government, which treat the housing industry as a cash cow. Up to 50% of the cost of a new home is government charges – and this underpins the affordability problem.
But now the biggest issue is the rental shortage crisis. This has evolved over the past five years as a result of federal and state government policies which have discouraged investors. The process continues, with several states implementing measures that will cause investors to sell, worsening the rental shortage.