October 14th,2022

The Real Estate Institute of Australia (REIA) has noted the latest report released by Australian Housing and Urban Research Institute (AHURI) highlights the need for additional supply with AHURI finding that only 3000 affordable social housing properties were built per annum against a requirement of 36,000.


REIA President, Mr Hayden Groves said the research identifies several options for tackling affordable rental homes all of which require government assistance either in the provision of the housing itself and/or rental assistance.


“Whilst this will assist in addressing an acute problem, the private rental market is predominantly mum and dad investors supplementing their superannuation savings and they will remain an integral part of the rental market moving forward.


“Australian real estate agencies – family owned and operated small business – manage a combined property management portfolio worth $3 trillion and manage $78 billion in rents each year.


“To keep this critical component of the housing sector you need to similarly provide an appropriate "playing field" which includes negative gearing as interest repayments increase.


“It does not need draconian measures such as rent freezes or additional land taxes,” Mr Groves said.


According to Mr Groves REIA’s view is that the housing affordability crisis is largely the result of a failure to build sufficient homes in this country.


“The Federal Government’s recent announcement to host round tables with lenders and developers in a bid to address housing affordability is unlikely of itself to be a circuit breaker.

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