Politicians cooked if they can't handle housing's hot political potato
There is a dire need to build more homes, and recent elections in New South Wales have highlighted that the housing and rental crises can no longer be the subject of political posturing.
Even though interest rates remain on hold, the spring selling season has yet to truly kick into high gear as buyers exercise caution in the current market.
Auction volumes have been down as a result of the long weekends, first in Victoria and then in New South Wales, and in Sydney clearance rates have eased back to around the 60-65 per cent mark after spending a considerable period around 70 per cent and higher.
Investors have been net sellers in recent times, however, with values generally stable in many areas while showing slight declines in some, it will be interesting to see if investor activity picks up in the weeks ahead.
Housing remains unaffordable
CoreLogic figures released in early October show that house values in Sydney grew by just 0.5 per cent in the September quarter, the lowest mark since early 2023. Rentals eased too, down 0.5 per cent in Sydney.
Some commentators made the absurd claim that these figures provide evidence the housing crisis may be easing.
Renters unable to save a deposit, mortgage holders struggling to make repayments, and investors forced to exit the market are unlikely to agree.
Housing, whether to buy or rent, remains deeply unaffordable for many people and only by increasing housing supply, and by making investing in residential property an attractive prospect, can we begin to turn it around.
There are signs that this reality is becoming increasingly clear in the public’s view.
The recent local Government elections in NSW showed a backlash against anti-development Councils as well as Greens candidates in many electorates, demonstrating that people increasingly recognise that the way out of the housing shortage is more homes.
Yet with consumers remaining very concerned about the cost of living, some politicians are still prioritising popular slogans over proper policy.
Those who float policies like rent freezes and the removal of negative gearing fall into one of two categories: they are either economically naïve or, even worse, they are wilfully seeking to exacerbate the housing crisis for their own political gain.
After the countless headlines spurred by the recent parliamentary debate over Labor’s housing bill, the result was simply to defer. In terms of action, nothing has been achieved. And we’ll have to revisit the whole grandstanding exercise again soon.
It’s rubbing salt into the wounds of the hopeful tenants queued 50 people deep for the mere opportunity to apply for a rental, to the young people struggling to save a deposit for a first home, and to mum and dad investors doing their best to hold on to their investment and not have to rely on welfare.
More and more people in the community are switched on to what’s happening. We need to build more homes. In time, those who stand in the way will find themselves without a political leg to stand on.
