Australia’s housing crisis has been developing over the past 20 years and is not solely a consequence of the COVID-19 pandemic, according to the Housing Industry Association (HIA).

HIA Managing Director Jocelyn Martins emphasizes that no single government action can resolve this issue within one term, but viable solutions do exist.

Martins points out that the current tax system places an increasing financial burden on new home buyers, contributing to the decline in new home construction over recent decades.

As fewer new buyers enter the market, the tax burden grows heavier for those who remain.

To address the crisis, Martins suggests several initiatives, including increasing the supply of diverse housing types, securing funding for public housing beyond election cycles, investing in infrastructure to facilitate the efficient delivery of shovel-ready land, restoring foreign investment in home building to enhance private rental availability, and expanding the Home Guarantee Scheme to assist more buyers.