Australia’s chronic underinvestment in social and affordable housing is worsening the housing affordability crisis in Melbourne and the Mornington Peninsula and aggravating the cost to other areas of the Federal Budget, according to Everybody’s ³Ô¹ÏÍøÕ¾, the national campaign to end homelessness.
SQM data shows property prices in inner Melbourne and Melbourne’s east have increased by 12.8 per cent and 13.4 per cent respectively over the past 12 months.
In the Mornington Peninsula, asking rents for all houses have increased by 12.5 per cent over the past 12 months while property prices have climbed by 17.6 per cent.
The Budget Position Paper includes previously unreleased modeling which shows underinvestment in social housing is causing foregone public sector cost offsets and private sector benefits of $676.5 million per annum currently, rising to $1.286 billion per annum in 2036. These take the form of added costs addressing homelessness, mental health, domestic violence, alcohol/substance abuse, but also reduced household spending and lower community wellbeing.
The submission also notes that constructing 25,000 social homes per year would generate an annual economic output of $12.9 billion, and create 15,700 jobs.
The paper makes the case for expanded social and affordable housing, to give people on low and modest incomes greater housing choice.
It also notes the steep decline in federal funding for social and Indigenous housing which in 2013-14 was over $2 billion, but is only budgeted at $1.6 billion in 2023-24. Indexed for inflation it should be $2.7 billion. In 1994, social housing made up six per cent of all housing. Today it is just four per cent.
Kate Colvin, national spokesperson for Everybody’s ³Ô¹ÏÍøÕ¾ said an investment in social housing was urgent and worthwhile.
“A secure home is the foundation for stability and security. It means you can look after your health, tend to your family, join the workforce and contribute to society. Without a home, none of these things are possible. As our leaders put the final touches on the Budget, they need to be aware of the full benefit of social housing as well as the deep human cost of not providing people with a home.
“The surging rental and property markets are swallowing up ever larger chunks of household budgets. Some regions of Australia, such as Tasmania, or the NSW and Queensland coasts have seen rents surge more than 20 per cent. This is not just breaking family budgets, it’s pushing families into homelessness.
“Australia’s common prosperity is best served by a housing system that gives people on low and modest incomes genuine choice and provides them with security and stability. The increasingly brutal financial contest for housing is simply indecent. We can do better.”
