Housing crisis about to get worse as Australia loses 30,000 affordable properties
09/10/2022
Australia’s housing crisis is about to worsen with the nation losing almost 30,000 affordable properties over the next four years, almost canceling out the effect of the new Housing Australia Future Fund.
Thousands of low-income renters will face steep rent increases or be forced to move as government subsidies under the scrapped National Rental Affordability Scheme (NRAS) come to an end. The most recent quarterly federal government report on the scheme shows 27,422 allocations will expire by 2026.
The end of the scheme means the 30,000 homes built under the new government’s Housing Australia Future Fund over its first five years will scarcely maintain the existing supply of affordable housing.
An Everybody’s Home Budget position paper released today says at least 25,000 new social housing dwellings are needed annually across Australia to help end the crisis.
The paper shows that constructing 25,000 social homes per year would generate an annual economic output of $12.9 billion.
The NRAS scheme – which subsidises housing providers to rent out properties for at least 20 per cent below market rates – was set up in 2008 but scrapped by the Abbott government in 2014.
Queensland will be hardest hit by the final phasing out of the scheme, losing 6,999 affordable properties by 2024 and 7,602 in total by 2026.
NSW will lose 5,178 allocations, Victoria will lose 4,366 and Western Australia will lose 4,656.
Crawley in WA will be the worst-affected suburb, losing 743 allocations by 2026. Bruce in the ACT will lose 705, Chippendale in NSW 643, Hobart 430, Waurn Ponds in Victoria 300, Fortitude Valley in Queensland 273, Coconut Grove in the NT 256 and Adelaide 190.
Everybody’s Home national spokesperson Kate Colvin said greater action must be taken now to alleviate the housing crisis.
“Despite being one of the richest nations in the world, Australia is facing a full-blown housing crisis with more than a million low-income Aussies living in housing stress.
“Since the start of the Covid pandemic, rents have increased 26 per cent, hitting record highs in many suburbs.
“The winding down of the National Rental Affordability Scheme will see Australia lose almost 30,000 affordable homes, effectively negating any impact of the Housing Australia Future Fund.
“We welcome the Fund as a great start, but all the evidence shows that much more is needed if we are to give low and modest income Australians the stability and security they need.”
To arrange an interview call Levi Joule 0481 112 074