Snapshot of nation’s housing supply ‘depressing reading’

As one of the nation’s leading provider of homelessness services, Mission Australia has described the latest report on Australia’s housing supply – which shows a current shortfall of around 215,000 dwellings with the greatest shortages affecting low income earners – as “depressing reading”.

Mission Australia says the National Housing Supply Council’s State of Supply Report 2011 reflects the parlous state of the nation’s housing profile. 

“If there was any further evidence needed that Australia’s housing situation is in very bad shape, then this is it,” said Mission Australia’s head of social policy, Eleri Morgan-Thomas.

“Despite the billions spent on social housing by governments in the wake of the global financial crisis – addressing a shortage that had grown worse over decades – it hasn’t been enough to meet demand. And so now we’re in a situation where we’re facing a shortage of around 215,000 dwellings which on current trends is expected to grow to 600,000 by 2030.

“What really worries us is that it’s people on low incomes who are bearing the brunt of the shortage and will continue to do so. The report identifies that the greatest shortages are in affordable purchase and rental for households on low to moderate incomes and subsidised rental housing for low income people.

“At the same time, rental increases have outstripped earnings growth and vacancy rates are low. Matched with recent increases in the cost of utilities and transport, it’s individuals and families at the lower end of the income scale that are most affected.

“The situation has serious impacts down the line. Because of the lack of affordable housing, more people on solid incomes will ‘camp’ in the rental market as they try to save to buy their own home. That will leave fewer rental vacancies and less opportunity for people on low incomes to move into the market.

“It will also mean homeless organisations have less flexibility and opportunity to move people from supported accommodation into independent living. Which will result in us having less places in our services for individuals and families in need.

“That’s actually the situation we’re in at the moment. A worsening housing situation for people on low incomes has other serious implications. It means less access to jobs and community participation and puts even more pressure on the social and community housing sectors.

“Governments have already made a significant contribution over the last few years in an effort to tackle the problem with more than $5 billion being spent on social housing in the wake of the global financial crisis. This was a welcome injection of funds after decades of neglect, but as predicted, it hasn’t been enough to touch the sides and more is needed.

“Governments can’t tackle the problem alone but it’s clear that COAG needs to take a stronger leadership role and make addressing the nation’s housing woes one of its chief objectives. It’s clear that the market isn’t going to fix by itself.

“One thing is certainly clear from this report, ‘more of the same’ is absolutely not an option. A national housing shortage of 600,000 dwellings by 2030 will be almost impossible to overcome. It’s a situation that would entrench disadvantage in many Australian communities and result in a reduced standard of living for many of our citizens,” said Ms Morgan-Thomas.

For more information

• Mission Australia's Pathways away from homelessness
• MA Housing

Paul Andrews
Mission Australia Media Contact
P: 02 9219 2080
M: 0409 665 495