Affordability rhetoric
- Written by Tim McKibbin, CEO of the Real Estate Institute of NSW (REINSW)
Housing warrants key consideration from voters because the word ‘crisis’ can be applied to several narratives framing the housing discussion
Leading up to Easter, we were seeing clearance rates soften to sit at the still highly respectable level of 65 to 70 per cent. Demand is strong but buyers are discerning, and we can expect a similar pattern to resume this week and continue through to the election.
Over the next few weeks, we can expect housing affordability to feature prominently in the Government’s and Opposition’s rhetoric.
Housing warrants key consideration from voters because the word ‘crisis’ can be applied to several narratives framing the housing discussion - affordability, homelessness, the rental accommodation shortage and the impact of natural disasters, to name a few.
The bipartisan support for negative gearing shows both parties understand the importance of encouraging people to invest in property, though there’s an opportunity in tax reform to improve affordability for those looking to enter the market.
While stamp duty is incurred at a state level, it matters little to buyers hamstrung by this tax.
In New South Wales, the most obvious affordability solution with the greatest potential impact is increasing supply, particularly in areas well-serviced by public transport and infrastructure.
The recent devastation caused by the floods has exacerbated an already perilous situation for many families, including the lack of supply of suitable rental accommodation.
It will require a coordinated effort from all levels of Government and as the Real Estate Institute of Australia has pointed out, the potential for a national supply solution should be investigated.