Housing BreakthroughThe Federal Government’s $10 billion housing policy
appears set to pass through parliament after it reached agreement with The Greens.
Under the agreement funding will be given to the National Housing and Investment Finance
Corporation this financial year.
Homes built from the fund will include 4000 properties for women and children facing family
and domestic violence, as well as older women at risk of homelessness.
While the money may be available this financial year, economists warn it could actually
exacerbate the supply issues and capacity difficulties in the home building market.
AMP chief economist Shane Oliver says there is already a huge pipeline of works the
industry is struggling to manage.
“The main problem is shortfalls of materials and particular shortages of workers,” he says.
“We’re having trouble trying to build something like 165,000 dwellings a year. We need at
least 220,000 to keep up with underlying demand. It’s all pie in the sky if we don’t have the
means to build them.”
