In today’s video update, we’ll be talking about National Cabinet‘s Housing Announcement which is A New Direction for Australia
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Australia’s Housing Challenge
In a recent announcement by Australia’s National Cabinet, the government will ‘build’ 1.2 million homes over the next five years, starting from July 1, 2024, which has already gathered large attention. This ambitious target, an upsurge of 200,000 homes from the prior aim, plans to address Australia’s persistent housing shortage. The shortage, as mentioned by AMP chief economist, Dr. Shane Oliver, has been aggravated by an increase in immigration-driven population growth since the 2000s.
The Underlying Issue
Despite the problems caused by the pandemic, Australia faces a housing deficit of at least 100,000 houses. With immigration reaching record highs, this shortfall is set to grow unless there’s a considerable increase in housing production. The fundamental demographic demand stands at approximately 215,000 dwellings per annum. To bridge the gap, the target of constructing 240,000 homes annually seems plausible. On the other hand, achieving this will be a difficult task, given the past track record and present limitations in material and skills.
What’s going to happen?
To ease the situation, there’s a suggestion to focus on building more affordable and social housing. This method, while commendable, necessitates a holistic view. It’s vital to bring into line immigration rates with housing supply competencies and facilitate easier relocation from high-cost urban regions. The best solution lies in keeping a balance between demand and supply, making sure that every Australian has access to reasonably priced housing.
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