REIA BIG THREE FOR FEDERAL INQUIRY RETURNS TO HOUSING FUNDAMENTALS

October 11th,2021

As home ownership is fast being removed from a reality for many Australians and media speculation is rife on a lending crackdown, Real Estate Institute of Australia (REIA) has delivered three key urgent and actionable recommendations to the House of Representatives Standing Committee on Tax and Revenue inquiry on housing affordability and supply.

REIA President, Adrian Kelly said they have called for all governments to address three fundamentals which will assist Australians in achieving home ownership.

“Our three recommendations are axing taxes on Australian homes, building more houses and implementing a national plan for housing,” he said.

Mr Kelly said home ownership remains a major part of the great Australian dream, with 75% of Australians viewing home ownership as part of the Australian way of life but this is fast becoming an unreachable goal.

“With Covid-19 economic stimulus and housing support programs ending, first home buyer activity has plummeted by 20% since the start of this year – the decline is set to continue as the number of listings continue to dry up across the nation as home owners become more reluctant to sell up due to the high costs involved.

“Coinciding with the decline of first home buyers, listings are at a historical low falling down to just 200,000 over the past year – typically listings are double on this figure.

“As migration returns to normal, demand is expected to exceed new supply which in turn will further highlight the critical relationship between supply and affordability and new dwellings will be needed,” he said.