The Big Bang In The Budget To Build One Million Homes

Did you know that as part of the 2022-23 Federal Budget, the Government pledged on 25 October this year to introduce the National Housing Accord, a landmark agreement to address one of our nations most significant economicchallenges, the supply and affordability of housing?

The Government stated that it would align for the first time with all levels of Government, institutional investors, and the construction sector to help tackle the nations housing problem. They say, "Our shared ambition is to build one million new well-located homes over five years from 2024. However, they also recognise that most of this supply needs to come from the market, with the Government playing a key role in enabling and kick-starting this new investment revolution.’ Under the National Housing Accord, the Government has stated that they will provide $350 million to deliver an additional 10,000 affordable dwellings. This is on top of the 30,000 houses they already committed to during the election campaign by creating a Housing Australia Future Fund. The Government states that this will call upon superannuation funds and other institutional investors to invest in social and affordable housing by covering the gap between market rents and subsided rents.

Now, one million properties may sound like a lot. However, if you read the Government’s joint media release, the numbers don’t add up because they rely on private capital from superannuation funds and other institutional investors to fill the gap. The Governments ambitious housing reform agenda aims to support more people in home ownership and improve the supply and quality of social and affordable housing. The National Housing Accord is said to be the next step to improve housing outcomes for all Australians, our communities, and our economy. However, is 2024 going to be too late when we are under pressure now as a nation? Whether that be our current housing crises, wide-spread financial hardship, small businesses struggling to keep up, rising inflation and interest rates, not to mention the mental health of our nation post-Covid.

Let’s be optimistic and hope that the Government and other stakeholders step up and that the New Year brings better times and prosperity for everyone.

Source: Treasurer of the Commonwealth of Australia