The Federal Budget missed an opportunity to do more to fix the planning system and deliver more new housing, according to the Urban Development Institute of Australia.
UDIA national president Max Shifman says it focused on helping owner-occupiers, first-home buyers and those needing affordable housing but ignored the rental shortage.
“There is a real need for more rental accommodation, particularly in the regions where vacancy rates are virtually zero in many areas,” Shifman says.
“We rely partly on investors to provide homes for tenants, but the supply of housing isn’t keeping up with the demand at all. Supply side support and reforms are critical.”
Shifman says if the planning system is improved it would result in more new housing.
Senior economist at St George Economics Jarek Kowcza says if unemployment is reduced that will likely lead to higher wage growth. He says this will improve the whole economy which will have a positive impact for owner-occupiers and investors in the longer term.
