Australia needs a better housing system

Our view of this reporting

Over decades we have reviewed any number of industry, government and academic reporting often there are solid points of agreement contained within. In principle these reports are commissioned with good intentions and the authors are skilled and diligent in their task.

Often our view is that there are gaps of what is not discussed or considered in these reports that should be debated in our wider public. Feel free to start here as we review the options looking forward as identified in this report.

Australia needs a better housing system I wholeheartedly agree!

Imagine how good our community could be if we were enabled to not only shelter in these 11 million structures but they were designed and matched to our needs to intentionally allowing each of us to thrive!

Rowan Blizzard

Looking forward what options are there?

This chapter outlines 10 areas that could improve the state of the housing system. These require collective effort and coordination across all levels of government, the private sector, the community housing sector and the broader Australian community.

Source: National Housing Supply and Affordability Council

Broadly speaking these are probably not very controversial but we have some cheeky suggestions for a wider discussion: –

• Investing in social housing
• Reducing homelessness
• Improving rental market outcomes for tenants
• Improving efficiency in the land use and planning systems
• Boosting capacity in the construction sector
• Improving data availability
• Addressing regional-specific housing challenges
• Enhancing First Nations housing outcomes
• Reviewing the suitability of the national housing target
• Ensuring Australia’s taxation system supports supply and affordability

While these individually might be a handy list of future blogs we will review in brief here to start the ball rolling.

Investing in social housing

Sounds like we have furious agreement across our community on this one. One small caveat though “not in my backyard”. With our history of high density low socioeconomic housing being poorly supported there are reasonable grounds for local communities to be hesitant. Social and affordable housing can and should be done with the necessary skill and support such that it becomes a seamless integration in our overall housing market rather than being treated as an “other” housing type. When we make exceptions for “other” types to be delivered we are setting ourselves up for problems.

Reducing homelessness

Not controversial but we should ask some more questions.

What is an acceptable level of homelessness?

Or

Perhaps a reasonable expectation is that when homelessness occurs that is is brief and not a repeating pattern for those experiencing it.

Improving rental market outcomes for tenants

We have a belief that 3, 5 or 10 year tenure can be provided to tenants that offers the necessary checks and balances for both sides of the equation. Landlords need a sufficient and reasonable return on their investment. At the same time the tenants need some predictability and security in the costs of their housing.

For a better housing system at the very least we need more options than the current house or apartment offer. See some of our historical case studies here.

Improving efficiency in the land use and planning systems

With 6 States and a couple of territories and 14 houses of parliament for our meagre population of 26million we suspect that these statements are well intentioned and great ideals. In reality we suspect that these are unlikely to actually achieve any level of efficiency or consistency across the country.

Boosting capacity in the construction sector

How do we discuss dirty, dusty, dangerous outdoor work with the youth of today?

How do we actually convince imported skills and labour to continue in our inefficient and wasteful construction sector. Often these same employment candidates will find that are more attractive jobs in our modern economy. Because a migrant has entered the country with a skill in demand often these trade skills can be attractive to remote fly-in fly-out sites where their skills are put to use for a multi-national company. We cannot fault a new entrant from maximising their pay packet but this still ends up not expanding our housing supply.

Improving data availability

In the 2018 Royal Commission into Aged Care there were some startling findings around some very fundamental questions.

How much does government spend on aged care?

Apparently this could not be answered in the Royal Commission and some of the suggestions to come out of this system interrogation was to get better data. How is that coming along?

Yes improving data availability sounds like a good idea however I would suggest it is not the main game. Issues that demand attention are plentiful without getting too bogged down into further analysis.

Addressing regional-specific housing challenges

For housing we have some dramatic issues in our two tiered system. Metropolitan communities seem to do reasonable well. Perhaps this is because our representative political system means that they do have all the political sway. In the regions our communities suffer may inequities. Perhaps we should even be asking some probing questions.

Should the access to housing, hospitals, transport and communication be equal across all of our great country?

Or

Do our country cousins deserve lesser services as a cost of living in the regions?

Enhancing First Nations housing outcomes

Our first nations communities are doing worse than average on every metric that we can measure. In our “first world” country some of these inequities are truly astounding. Poor outcomes include:-

• Education opportunities
• Health outcomes
• Interaction with the justice system

These negative outcomes will be improved with intentional fit for purpose housing. It seems that when we engage with our first nations communities we still persist with applying our housing thinking to their situation. This seems to be quite contrary to these communities experience of living in sync with the country and environment rather than our typical response of building incompatible boxes.

For a better housing system we could learn much from our First Nations examples.

Reviewing the suitability of the national housing target

Targets are great for sure and they help to provide some direction. None of these big picture targets have been met, or even benchmarked, in delivery. When we review the National Rental Affordability Scheme (NRAS) or perhaps the Northern Territory Intervention (Northern Territory National Emergency Response, also known as “The Intervention“) how did we go against the stated goals or targets. We understand that plans are almost never delivered at 100% as circumstances (it’s called life) changes along the way.

An example of the reporting on the “Failed” Northern Territory Intervention after the event can be found here.

Ensuring Australia’s taxation system supports supply and affordability

With a 5 year projection this is tricky. With our human bias for the negative we provide any opposition has a free kick. In our popularist system of government candidates generally run a mile when the word “TAX” is mentioned. I have no fear of being voted in our out! You are most welcome to debate my views.

This report makes no mention of the fact that our established housing system is taking up to 40% in fees taxes and charges for all new housing delivery.

Across the states and territories we have found the costs of fees, taxes and charges involved in new house supply and delivery.

Housing Industry Australia

Perhaps there is some room in our existing tax system to revisit the current settings.

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