Real Estate Institute of Australia (REIA) President, Hayden Groves has welcomed RBA’s evidence-based decision to hold the official cash rate as Australians struggle with a difficult economic climate and severe housing shortage.
Mr Groves said that recent ABS data demonstrated that the Consumer Price Index (CPI) has started to slow, recording 6.8% in the twelve months to February.
“This is down on the annual figure for the year to January of 7.4% and 8.4% for the twelve months to December 2022 and points to a clear downward trajectory in the rate of inflation.
“However, the most significant contributor to the annual increase in the February monthly CPI indicator was housing and the rental sector.
“Rents continued to rise with an annual increase of 4.8% in February the same as January’s compared to the 12 months to December of 4.1%.
Mr Groves said with monetary levers on hold for now it is time attention is given by decision makers to increase housing options for Australians.
“We are fighting inflation at the same time we are fighting a severe housing, particularly rental, shortage with all Australians affected by the slowdown of the economy,” Mr Groves said.
Mr Groves said Australian consumers, whether they are renters, potential home buyers or homeowners, are suffering from this on both fronts.
“Ahead of the Federal Budget 2023, we need to move forward with programs of investment that physically deliver increased housing, such as taxation reforms and a government housing audit, that practically helps Australian renters and home buyers combat the current crisis.”
