Senate Committee Informed that Mortgage Payments are Approaching 50 Percent of Household Income
A latest housing affordability report reveals that households are now spending over 40 percent of their income on mortgage payments, while national rental vacancy rates have dropped to an all-time low of 1.6 percent.
Maria Edward, CEO of the Real Estate Institute of the ACT (REIACT), shared these findings before a Senate committee on the National Housing and Homelessness Plan Bill.
Edward emphasised housing’s critical role in Australia’s economy, noting the residential real estate sector’s $10.8 trillion (US$7.1 trillion) valuation. However, she warned of a deepening housing crisis, impacting everyday Australians and straining the broader economy.
“Property managers are overwhelmed by high demand, with many applicants competing for each rental property amid a severe supply shortage,” she said.
The proposed bill recommends a National Housing and Homelessness Plan, establishing a National Housing Consumer Council to offer consumer-focused advice and a National Housing and Homelessness Advocate to independently monitor the plan’s progress and review systemic issues.
While most representatives expressed support for the bill and the government’s commitment to tackle the housing crisis, they criticised the groundwork.
“It’s quite significant that this is the first time such a plan has been proposed in Australia, but we are still waiting for its development,” said Hal Pawson, professor of Housing Research and Policy and associate director at the University of New South Wales’ (UNSW) City Futures Research Centre.
Call for Comprehensive National Housing Policy
Experts agree that a unified national housing policy is urgently needed to address Australia’s worsening housing crisis.
Pawson pointed to fragmented policymaking, stating, “The country’s worsening housing issues are partially due to ineffective policymaking and a lack of coherence.”
“Establishing a meaningful, ambitious, and evidence-based national plan is crucial for improving Australia’s housing situation,” he said.
Chris Martin, a senior research fellow at UNSW’s City Futures Research Centre, reinforced the demand for a national plan rooted in law.
He recommended that the proposed legislation’s objectives must be obligating the minister to report to Parliament, aligning objectives with human rights obligations, and setting a 10-year time frame to increase accountability and transparency in housing initiatives.
Housing a Human Right?
Advocates are calling for housing to be recognised as a fundamental human right in Australia, aligning domestic policies with international treaties.
Kevin Bell, professor of law resources and director of the Castan Centre for Human Rights Law, argues this shift is essential to address the nation’s housing crisis.
He said legislation could recognise adequate housing as a basic right, forming a foundation for the national housing plan.
Experts also suggest embedding the right to housing within a federal Human Rights Act, a recommendation previously supported by the Australian Human Rights Commission and the Joint Parliamentary Committee on Human Rights.
Aboriginal Focus
The number of Aboriginal Australians Victorian at risk of homelessness has surged by 29 percent over the past four years.
Homelessness and unmet social housing demand are at least 10 times higher for First Nations people than for the general population, reported Darren Smith from Victoria’s Aboriginal Housing and Homelessness Forum.
Smith advocated for a national housing plan that prioritises Aboriginal self-determination, integrates Aboriginal expertise, and incorporates feedback from peak bodies.
He urged the continuous involvement of the National Aboriginal and Torres Strait Islander Housing Association to ensure mainstream providers address Aboriginal communities’ specific needs and develop tailored homelessness solutions.
Age-Specific Reforms
Aged care and youth advocates pushed for urgent amendments to the housing bill to address age-specific vulnerabilities.
Mike Zorbas, chief executive of the Property Council of Australia, stressed the need for diverse housing options for Australians at different life stages, supporting developments like purpose-built student accommodation and retirement villages.
David Wright-Howie from COTA Australia underscored the importance of a 10-year housing plan focused on older Australians, particularly single women over 50 at risk of homelessness.
He highlighted funding gaps in crisis housing and called for a review of Commonwealth rent assistance to ensure it is effective. Wright-Howie also supports creating a consumer council to amplify the voices of older Australians facing housing insecurity and backs an independent housing advocate for oversight.
Meanwhile, Joanna Rostami from the Australian Youth Affairs Coalition called for guaranteed youth representation on the National Housing Consumer Council.
She noted gaps in support for young people transitioning out of youth care, recommending a dedicated youth housing plan that recognises unique pathways to homelessness, such as couch surfing and overcrowding.
