Election 2022 and Housing Affordability is Center Stage
With the federal election just around the corner on May 21, the majors are hitting the campaign trail with fervour to gain Aussie votes – but there is one thing squarely on the minds of many Australians this year, and that is housing affordability.
Benefits of buying
The Housing Industry Association has long argued that getting people into their own home is one of the best things a government can do for the national economy. As a property buyer with a background in psychology, I would argue it’s the best thing you can do for your wallet and your wellbeing folks.
HIA Managing Director Graham Wolfe agrees that owning your own home, especially in uncertain times like these, is a great way for people to maintain financial security while contributing to a positive trickle-down effect into the wider Australian economy.
However, Wolfe also notes that many potential first home homebuyers are losing hope of ever owning a property to call their own, seeing as house prices are continually rising with no proximate end in sight.
What matters to the voters
Research conducted by HIA suggests that homeownership remains a top priority for Australian voters, so both Labor and Liberal campaigns should be prepared to diligently respond to this concern.
With anxieties such as housing supply, land supply, social and community housing, rental housing, population and immigration, taxation, skills, and business red tape among the key areas impacting housing in 2022, HIA insists that cost-effective and efficient measures that bring about change in the building sector should be spoken to, as this will increase supply and make housing more affordable.
Clients of Kitty & Miles agree – and we’re waiting for answers.
So how do the major political parties plan to prove that homeownership matters to them as much as it does to us?
Housing affordability – what the major parties are offering
Before you hold your hands up to say, “Woah now, Kitty! I’m here for the property info – not the political commentary!” – you can rest easy. Below you will find information taken directly from each of the major parties’ websites, giving you a brief overview of what both Liberal and Labor are promising on the housing front. No opinions from lil ol’ me – just the plain and simple ‘political facts’ (if those two words can be used in a sentence together lol).
According to a post delivered on 29th March 2022, the Morrison Government is providing an:
- Additional $2 billion in low-cost financing to the Morrison Government’s National Housing Finance and Investment Corporation (NHFIC) – supporting the provision of social and affordable homes for vulnerable Australians;
- Increase the liability cap of NHFIC’s Affordable Housing Bond Aggregator (AHBA) – supporting 27,500 dwellings.
- Expansion to NHFIC’s liability cap, adding $2 billion to $5.5 billion to attract private investment.
- Action to underwrite NHFIC’s ability to continue the delivery of stable and secure accommodation to those in need: in addition to the doubling of the Morrison Government’s Home Guarantee Scheme to make up to 50,000 places available each year, including a new Regional Home Guarantee open to non-first home buyers.
The following will also be available under the expanded Home Guarantee Scheme:
- Eligible first home buyers can purchase a home with a 5% deposit. There will be 35,000 guarantees each year – an increase of 25,000 starting 1 July 2022 under the First Home Guarantee;
- Eligible homebuyers, including non-first home buyers and permanent residents, can purchase or construct a home in regional areas under a new Regional Home Guarantee – with 10,000 guarantees available each year from 1 October 2022 to 30 June 2025;
- Eligible single parents with children to buy their first home or to re-enter the housing market with a deposit as little as 2%; this is the Family Home Guarantee announced in last year’s budget, with 5,000 guarantees available each year from 1 July 2022 to 30 June 2025.
On the other hand, the Australian Labor Party announced plans to address Aussie homebuyers’ concerns with a focus on women at risk, essential workers and construction workers. Key areas include:
- Creating a $10 billion Housing Australia Future Fund, which will build 30,000 new social and affordable housing properties in its first five years, and create thousands of jobs;
- Annual investment returns from the Housing Australia Future Fund to be transferred to the National Housing Finance and Investment Corporation (NHFIC) to pay for social and affordable housing projects.
According to the ALP, approximately 4,000 of the social and affordable housing projects will be allocated to women and children fleeing domestic and family violence, and older women on low incomes who are at risk of homelessness.
They also plan to build 10,000 affordable homes for frontline workers such as police, nurses and cleaners. Why? So they can live closer to work, meaning less travel and better services for everyday Australians. About time I say!
This initiative is said to support the creation of 21,500 full-time jobs across the construction industry and broader economy annually for five years, with 1 in 10 being apprentices working on site.
So regardless of whether you’re voting for Liberal, Labor or one of the Independents on May 21, ensure your housing affordability and availability concerns have been addressed fully before dropping the ballot into the box.
Every vote counts, so make sure you are armed with the information you need to make an informed decision on the day.
And remember, whatever your vote, Kitty & Miles will be here to assist with your property buying experience and guide you on your journey – whether house prices continue to climb or the market regulates itself once again.