It’s become increasingly obvious when it comes to discussion about the property market that the word “affordable” is a marketing tool for politicians rather than a genuine concept.
Politicians of all levels and persuasions love to announce policies or projects which they say will deliver affordable dwellings in their major cities.
But there’s one glaring absence amid the propaganda which makes it clear that these occasions are publicity opportunities rather than honest attempts to provide solutions to the festering problem of expensive housing.
The glaring absence is pricing.
There is always the claim that they will build affordable dwellings but there are never – and I do mean NEVER – any numbers. How much will the homes cost? We are never told.
Because the harsh reality is that it’s not possible to build new homes in our cities and make them available at prices that anyone would label “affordable”.
Construction costs have risen substantially since the start of the pandemic and in some states half the cost of a new house and land package is made up of government fees and taxes.
The notion of affordable new dwellings is a mirage created by our elected representatives.
Policy debates continue to rage over short-term fixes like rent caps, Airbnb bans and vacant property taxes but these will not fix the issue.
It sounds good politically, but it doesn’t build homes.
Brisbane Lord Mayor Adrian Schrinner has announced a planning review of zoning laws which could allow more development and higher density. This he says will deliver more affordable housing. He didn’t announce any potential price points though.
It all sounds good in theory but in practice will do little to deliver desperately needed homes as an affordable price point.
The challenge will be managing community pushback. And the biggest issue of all – the high cost of building homes.
In New South Wales, where the cost of a new house and land package is around $1.2 million, Premier Chris Minns says he’s facilitating the creation of affordable homes everywhere.
He hasn’t released any figures on what those levels of affordability are. His latest work of affordability fiction relates to a development site in the Inner West of Sydney, where you typically pay well over $2 million for a house.
The next time you see one of our many politicians proclaiming to the media their latest scheme to build affordable dwellings – be sceptical.
