Housing slump needs urgent govt attention

Housing slump needs urgent govt attention

26 July 2012 by Staff Reporter 1 comments

Steven Cross

The federal government needs to fix what is the worst residential housing building market in decades, a roundtable meeting at Parliament House in Canberra has heard.

The meeting was organised by the Housing Industry Association (HIA), and was addressed by the Minister for Housing and Homelessness, Hon Brendan O’Connor. The HIA said attendees were also briefed by experts in the fields of economics and housing.

According to the HIA, attendees agreed that the housing industry is currently facing the worst conditions in decades, and a lack of action by all levels of government is constraining the ability of Australians to access affordable housing.

In mid July, the HIA forecast an 11.5 per cent decline in dwelling commencements in 2012, to a level of 133,420.

The HIA pointed to a new report, which was presented at the meeting, which it said confirmed the importance of residential building to the Australian economy and the economic value of adequate housing to improving employment.

Key findings of the report, which was undertaken by the Centre for International Economics (CIE) on behalf of HIA, included details of the sector's value to the economy.

“The residential building industry is directly worth $70 billion to the Australian economy and is responsible for putting over 350,000 people into a new home each year,” said HIA managing director, Shane Goodwin.

“This new independent research now quantifies the impact of housing on the economy and concludes that a one per cent increase in productivity in the sector can boost the broader economy by a factor as high as 4.81.”

“Given the burden of red and green tape on the sector, itself a substantial weight on improvements to productivity, there is a large amount of economic gain that can be achieved through modest and targeted action by government.”

“Similarly, for every dollar in taxation removed from housing construction, there is a return of $2.46 to the economy.” 

Steven Cross

The federal government needs to fix what is the worst residential housing building market in decades, a roundtable meeting at Parliament House in Canberra has heard.

The meeting was organised by the Housing Industry Association (HIA), and was addressed by the Minister for Housing and Homelessness, Hon Brendan O’Connor. The HIA said attendees were also briefed by experts in the fields of economics and housing.

According to the HIA, attendees agreed that the housing industry is currently facing the worst conditions in decades, and a lack of action by all levels of government is constraining the ability of Australians to access affordable housing.

In mid July, the HIA forecast an 11.5 per cent decline in dwelling commencements in 2012, to a level of 133,420.

The HIA pointed to a new report, which was presented at the meeting, which it said confirmed the importance of residential building to the Australian economy and the economic value of adequate housing to improving employment.

Key findings of the report, which was undertaken by the Centre for International Economics (CIE) on behalf of HIA, included details of the sector's value to the economy.

“The residential building industry is directly worth $70 billion to the Australian economy and is responsible for putting over 350,000 people into a new home each year,” said HIA managing director, Shane Goodwin.

“This new independent research now quantifies the impact of housing on the economy and concludes that a one per cent increase in productivity in the sector can boost the broader economy by a factor as high as 4.81.”

“Given the burden of red and green tape on the sector, itself a substantial weight on improvements to productivity, there is a large amount of economic gain that can be achieved through modest and targeted action by government.”

“Similarly, for every dollar in taxation removed from housing construction, there is a return of $2.46 to the economy.” 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?