The Real Estate Institute of Australia (REIA) has made the case for tax and supply reform through a simple three point plan to the Standing Committee on Taxation and Revenue.
Giving evidence to the Committee yesterday (4 November 2021), REIA President, Adrian Kelly, said that housing affordability needs to be urgently addressed before it becomes out of reach for aspiring homeowners.
Mr Kelly said the current housing affordability and supply challenge in Australia is categorically the most significant on record.
“In layman’s terms, this means for your average home buyer or renter, that there are far fewer properties to choose from and all of them are sold or leased at historical highs.
“Contrary to what some commentators might believe, the real estate industry is strongly of the view that the Australian dream of home ownership should be accessible to everyone.
“We take no comfort in the current record prices we are seeing, because they are primarily driven by a lack of supply. We would rather see 10 buyers happily enter the market through the availability of 10 suitable homes, than 10 buyers outbidding each other for one available home.
“There is a lot of quantitative data outlining the significance of the current market, my hometown of Hobart has now hit a median house price of $1 million dollars. This is driven by Australians escaping the cities, interstate and international competition and a strong preference for houses over units or apartments.
“Australians that you would normally expect are not ‘rightsizing’ at the rate you would currently expect due to being unable to purchase anything in the current market. This hesitation needs to be unlocked,” Mr Kelly said.
