The majority of Australians are struggling financially as the cost of food, energy, health and housing continue to skyrocket. A recent survey of 1,500 Australians by the Salvation Army identified that an astonishing 94% of people are struggling to afford essentials including housing.
The Australian Bureau of Statistics (ABS) has released new data that demonstrates that Australian households whose primary source of income is wages and salaries, saw costs of living rise a significant 1.7% in the March 2024 quarter. Of most significance to these Australians is that mortgage interest charges rose 7% in the March quarter.
The latest PropTrack Rental Affordability Report found that rental affordability has hit its worst level in 17 years. The ANZ Corelogic Housing Affordability report highlighted that the portion of income required to service rents has shifted to 30% for median income earners. Nationally, annual rent growth has lifted from 8.1% year-on-year in October 2023, to 8.6% year-on-year in March 2024.
The National Housing Supply and Affordability Council’s State of the Housing System Report released last Friday, recommends greater investment into social and affordable housing to meet current demand and to be comparable to other advanced economies. The Report notes that social and affordable housing is ‘essential infrastructure’ which enhances economic productivity, labour market participation and cohesive communities, while reducing homelessness and poverty.
PowerHousing Australia CEO Michelle Gegenhuber said “The recent data is clear evidence of the desperate need for more social and affordable housing. As costs of living across the domains of food, utilities, health and housing continue rise, Australians are hurting and more needs to be done to help alleviate the pressure they are under.”
“Housing unaffordability not only affects Australians’ pockets but has a broad range of impacts on the economy at the macro and at the micro level such as affecting a person’s physical, mental health and family relationships.”
PowerHousing Australia Community Housing Provider (CHP) Members applied for a huge 26,120 dwellings in the first round of funding for the Federal Government’s landmark Housing Australia Future Fund (HAFF). Should they be successful, thousands of new social and affordable homes will be developed across Australian cities, surrounds and desperately in need regional areas.
If funding is not made available for these projects in this first round of the HAFF, 82% projects (21,418 dwellings) would not eventuate.
“The time for the Federal Government to act is now. Not only will 26,120 new homes help alleviate financial pressure for thousands of Australians, but there is opportunity to structure the construction of these homes over a 1-2 year pipeline, which can help reduce inflation and ensure a sustainable flow for Australia’s struggling construction industry”.
“We are calling on the Government to double the investment in the HAFF and the National Housing Accord (NHA) enabling a secure, long term development pipeline. And for an immediate injection of further funds for HAFF projects in Round 1, to ensure that all quality housing outcomes can be delivered and are not lost at a time of critical supply shortages.”
For further detail contact:
Michelle Gegenhuber, Chief Executive Officer, PowerHousing Australia – 0447 069 812