The Housing Industry Association (HIA) has called on both major parties to embrace election polices that promote a housing recovery in the Australian economy.
"Residential building is one of the few sectors in a position to generate substantial economic activity in the wake of the mining boom," said HIA managing director, Shane Goodwin. "New home building has a significant multiplier effect that drives activity throughout the wider economy."
Goodwin said that, for a 1% productivity increase in new home building – either through cutting ‘red tape’ or modernising the taxation system – the wider economy will benefit by around $1bn.
"Australia is currently building around 25,000 homes per year, less than a decade ago, which is not only putting the brakes on job creation in the sector, but placing upward pressure on housing prices,” Goodwin said.
He added that housing affordability is consistently being nominated as one of the top few issues on the minds of voters.
“There is clearly a great deal of angst amongst Australians about how the current and future generations will be able to afford a home," he said.
The HIA pointed to key areas for policy action to promote a revival in new home building:
Reform the taxation system, including the removal of inefficient taxes on new housing
Reduction of the red and green tape burden that is choking small business
Improved funding mechanisms for residential related infrastructure
Better access to finance for home buyers and builders
Modernisation of the industrial relations system
"Any party or candidate that goes into the federal election without a significant housing platform in their policy list is ignoring a key part of the economy and the concerns of millions of Australians," Goodwin said.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
tweed heads south
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out