The ACT housing market is leaving too many behind

The emboldened Greens may well have some success in getting priority for social housing but, important as that will be for some, it would still only be a marginal solution to the problems outlined in this post.

To the extent that broader solutions are within the control of the ACT Government (rather than the federal government and central banks), it’s very difficult to see much changing because of its heavy reliance on property-related revenues and because of the limits on what existing residents (of all political persuasions) will tolerate in terms of infill/densification.

That being the case, the most practical thing that could be done to support housing choice and affordability in the Canberra region would to improve cross-border transport – not just expanded roads, but also better and more flexible public transport options.

On the one hand the Barr Government is requiring 15 to 25 percent of new developments to be affordable housing, but on the other they don’t actually enforce it, and when it does it’s a 300m2 block big enough for a 2br house that no family wants to buy and they’re flogging it for $350,000 to bring in as much money as possible. On top of this, they’re loaned the Suburban Land Agency $100million to keep afloat, and taking $4million per year from a community housing provider that would have otherwise used it to increase supply in the market. Money money money for the government and no affordable housing, but hey we’ve got them back for 4 years to keep doing the same thing.

The situation is a ponzi scheme. It’s financial exploitation and rent seeking. Its evidence of falling living standards. The article makes it clear that andrew barr proritises protecting home owner equity over addressing growing homelessness and indebtedness. Judging by our laws, recent elections and the housing market, it would seem Australians would rather take a cut of someone elses paycheck than work or sacrifice a little to extend a comparable standard of living to future Australians. I tell you this, don’t expect Australians who are not given fair opportunity to own their piece of Australia to be very generous, or happy. Anyone who thinks land prices going to infinity is a good thing needs to join the flat earth society.

The outrageous house prices can be laid at the feet of ‘both’ ACT and Commonwealth Governments.

Federal Government should be incentivising low cost rentals through their negative gearing tax policies (ie reducing the tax advantages for high rent, high value investment properties).

The ACT Government needs to actually back up what they say and properly enforce property developers to provide 15-25% low price housing within developments. Too often developers get to simply bypass ACT Government policy without much effort or pushback from the government.

ACT Government also has to develop far better development plans and spatial plans for suburbs and precincts. The ridiculous motherhood statement filled plans they have at the moment. Words along the line of “Make spaces more activated and ensure proper and effective access for all the community”

Good. More Labor voters won’t be able to afford to live here between large mortgages, hugely increased rates, and both of those factors driving rent up.

“We need more people owning their own home and being in charge of their own destiny.”

Why?

There are numerous issues that drive the current price of housing in the ACT but another part of the issue is the expectation that everyone should be able to own their own home. This is an unrealistic expectation and actively harms many people who over extend themselves when they would be better off remaining as renters.

Yes, there are things that both the local and federal government’s could and should do to increase housing affordability but it’s never going to be truly affordable for many and we should accept that.

What a pity it is that this article wasn’t posted a few weeks ago.

This Govt LOVES the ridiculous price of houses in the ACT as it means more revenue for them at all levels. Anything about “affordable housing” is merely lip-service to appease those who dare speak up about the inequity endorsed by their blatant money-hungry policies. A safe place to live is a basic human right, one which is already unattainable for most in this city. It’s not OK that people have to go into so much debt to simply own a place to call home. Sure, we could all lower our expectations a little of what we “want” but when its almost impossible to afford what we “need” then we have a serious problem.