Real Estate Institute of Australia is calling on the Federal Government to urgently address issues surrounding home ownership as supply continues to diminish.

Speaking at the National Housing Forum on June 16, REIA President, Adrian Kelly said after holding their first ever policy forum of Australia’s real estate agents – Getting Real – in Darwin, we actually upgraded our forecast for sales and rentals to rise between 20-50% in supply shortfalls across the states.

“The amount of owner occupiers without a mortgage plummeted from 40% in 1994 to just 30% by 2018 and this figure is expected to continue to decline as more people struggle to pay off their homes,” he said.

Supply will need to address the five categories of the housing spectrum which includes homelessness (0.5%), social and affordable housing (3%), private rental (27%), first home buyers (15%) and home ownership (67%) (37% with a mortgage).

Mr Kelly said, these percentages highlight the need to protect and promote the private sector. While there is no argument that more social and affordable housing options are needed, we do have to acknowledge that 97% of Australians are concerned with supply in the private market.

“Pre-pandemic, REIA estimated the supply shortfall to be around 150,000 homes and this is despite the major home construction boom credited widely to the HomeBuilder stimulus.

“With 235,000 new Australians expected to return in force by 2023- 2024 after negative population growth, enabling supply is going to be critical. Between 2023 and 2060, we can expect significant changes to the status quo that must be planned for,” Mr Kelly said.

According to Mr Kelly housing affordability in New South Wales is at its worst ever with home buyers spending a staggering 43.7% of their income on loan repayments while renters are now spending 27.5% of their income on rent.

“Outlandish media headlines on housing affordability are all very well and good, but the reality is we need to bring State and Federal Governments to the table to tackling a housing supply plan using the same spirit, determination and funding we have used to fight COVID-19.”

Similar to this:

House prices increase at the highest quarterly rate in a decade - REIA

REIA to host ‘getting real’ policy forum in Darwin in a bid to address housing issues across Australia

A new record in housing finance approvals - REIA