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Government housing targets face significant feasibility challenges
Australia’s housing targets face challenges as supply issues and construction costs threaten affordability and government goals
Australia’s housing targets face challenges as supply issues and construction costs threaten affordability and government goals.
– Australia struggles to meet housing targets amid rising costs and policy inefficiencies, with current shortfall of 69,000 homes.
– New government schemes aim to boost demand but fail to address underlying affordability issues for buyers.
Questions arise regarding Australia’s housing targets as government promises lag behind reality. Housing supply is under strain, with new data indicating concerns over affordability, policy inefficiencies, and the future of the property market.
On this episodes of Beyond the Deal, Dion Besser is joined by Cameron Kusher from Kusher Consulting discusses the viability of the government’s housing accord, which aims for 1.2 million homes over five years. This target equates to 240,000 homes annually, a goal historically difficult to meet.
Construction costs have surged, influenced by rising inflation and interest rates, reducing the feasibility of new housing. Currently, Australia is about 69,000 dwellings short of its target in the first year, with completions falling from the previous year. Despite potential improvements as interest rates decrease, achieving the target remains a distant goal.
Brought to you by Besser +Co Estate Agents.
